Financial Times , 1982, UK, English

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No. 28, 17 ®"

,\\ PUBLISHED IN. LONDON AND FRANKFURT

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Tuesday June 8 1982

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King & Co

Industrial and
Commercial Properly
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MAYS SUMMARY

GENERAL

BUSINESS

Actuaries
indices
hit new

on alert peaks

Police and troops were put on
standby in case health workers
Fail to maintain emergency cover
daring today's 24-houjr strike.

The strike is set -to be the
biggest, so far, by Health Ser-
vice utnons over their-* pay
claim, and the Ariny Medical
Corps may " be used ' to keep
emergency services going,
Yorkshire miners have
pledged action in support of the
health workers and 66,000 pit-
men £nom file county plan to
picket hospitals, with the
promise that (this will be orderly.
Page 12

Diplomat slain

Turkish diplomat Erkut Akbay,
40, was killed by a gunman- in
an attack, near Lisbon His wife
was seriously wounded '

Capital taken

Hebei forces -lead by. Chad's
former defence minis ter
Hissene Halbre occupied the
country’s capital NDjamenai
meetup little resistance. Page 4

Asylum sought

Mozambique’s national director
of security George .Cp$ta,. : was
reported toliave sought political
asylum in South Africa.

Flood kills 240

Deaths an flooding in Indonesia's
South Sumatra ’ province total
240, province governor .Sainan
Sagunan . said. About 3,000
people are homeless.

Stornrhavoc

At least 18 jpeople-. ffled ‘ as : a .
%tonq swspf through the norfb-
JegsjOTi . Ui>. Elevetmrfie? of

. jfiwir^iSu oiff.bu'uiyi! f2*£s '\iixp--

•surged through towns. .

Factory blast

-An explosion wrecking a.fire-
•works factory bn the- Chinese
island of Hainan killed 17 and
'injured 24.

^Pit deaths

Tour Polish miners were killed
in a cave at- -the Victoria mine,
in southern Poland. Two others
are missing. It was the -second
fatal , accident at the pit in two
months.

Shift refusal

British Airways cabin staff will
-today refuse to work a recently-
jintrpduced shift pattern, which
they say is dangerous to their
health and potentially hazardous
to passengers. Page 12

t>eak conquered

Three Britisb climbers have
scaled 26,388 ft ; Mount
Stixaib angina in the Himalayas.
The ascent included a 10,000 ft
verticle climb. of what is said to
be the world's biggest unsealed
^jface.

Crane protest

•Two anti -nuclear protesters
■selimbeda 150 ft crane in Barrow
docks, Cumbria in a move to.
halt operations by British.

■ Nuclear Fuels.

Play triumph

The Life and Adventures of
Nicholas Nickleby, an 84-hour
British play, won. four Tonys—
the Broadway equivalent to

■ Oscars— in New York.

Greenwood plea

England soccer manager Ron
'Greenwood appealed to England
supporters' going to the World
;Cup finals to behave themselves.

^Briefly « v» :

Whisky- worth-- £40j000 ...was
destroyed . in a railway wagon -
-fire at Coventry. ' ,

-Earthquake measuring: 6.6 bin
;-the Richter Scale -shook Mexico.
Bus bvertiirhed in eastern
Zimbabwe, killing 14 people. '

• EQUITIES: the FT 30-share
index closed O up at 592.6,
Within five points of its all-time
record. The FT Actuaries three

main indices attained best-ever
peaks, the AU-Share rising 0.5
per cent to 339*26. Page 35

• GILTS: the Government
Securities Index gained 024 for
an 11-day advance of 2.37 to
70.4— its highest since March 20,
19SL Page 35

• WALL STREET was 1.62 up
at 806.6 near the dose. Page 34

• STERLING closed in London
at $1,792, a fall of 40 points
since Friday.' It rose to DM L27
(DM 4JJ35), ' SwFr X64 (SwFr
3.635) and FFrlL1075 (FFr
11.045). 'Its trade-weighted
index was 90.9 (90,6). Page .36

• DOLLA^i rose to DM 2^82
(DM2.356), SwFr .2.03 (SwFr
2.0225) and Y245.7S (Y243.7S).
Its trade-weighted index was

. H5;9 (lloJ). Page 36 * ,

W LOLD troSe^lMS folonflon
to dose ai $324475. In New
York the Comex June dose was
$337 ($317.6). Page 30

• UK CURRENT ACCOUNT
surplus on the balance of trade
fell - Jo' £553m in ' the first
quarter of this year, compared
with fLSBbii in the last three
months of 1981: Back Pago

NUR SECRETARY Sid
Wedghall said he would, make
a pay deal with British Raffl
separate .from train, drivers'
unkm Aslefi. Back Page; plan to
raise. private sector finance for
YIetoria-Gatwiek rail link. Back
Page;

• BP IS SELLING its 15 per
cent .stake in the North Sea’s
Beatrice , field to Lasmo
(London and. Scottish Marine
Oil) for £75 hl Page 10

• BRITISH STEEL Corporation
is considering dosing one of
its. five main production sites.
BackPage

• ICL-made a. pre-tax loss of
£13.5m (£33.9m) for the six
months to ’.March 31 and
expects to return to profit for
the year as a whole. Back Page

• .METAL-:. BOX reported

second half , pre-tax profits of
£21.5m (£9-24m). Page 22;

Lex,; Back Page

• REED INTERNATIONAL in-
creased taxable profits by
£2iL2m to £T1.6m for the 53
■weeks to April .4,- despite a sharp
downturn .in the.' newspaper
division. Page 22; Lex, Back
Page

• ICI AUSTRALIA reported a
10.5 per cent drop in. after-tax
operating .profits, to A$17m
(£9.9Sm) for the six months to
March 31, Page 33

• MONTEDISON SPA, the
holding company for the giant
Italian chemical concern, more
than doubled its losses last year
to~L598bn f£244m). Page 32

• WE- APOLOGISE to readers
who did not receive the FT
yesterday .because of produc-
tion problems.. We are repeat-
ing the prospectus fof Argyll ,
Foods* -starting on Page 24:

CHIEF PRICE CHANGES YESTERDAY

lees in pence unless otherwise

Rises

asury 12% 19S7 *964+ A "
asuryi54% 199>.fll4f+ * .•

istead +.S. _•

.SJJ. .i..:..::.':.;.. 303 + 28

sultants • 177 + 9

flop — ... 71+ 4

jna .......... J 363 + 13

3 ........... 954 + 9 .

stf 717. + 10

nd Met *New’..-5§pm+ 6
irker Siddelejr .•• 346 -+ J ‘
jting Gibson ... Il8xd+ 17.
r (Ife), ......... 192 + 6

at j ftiyy .i. .......... 168 + 16 •••

rhead " 1SI + 6 --

hrmans 94 + 5 .

al insurance 347 + p . ,

indicated) .

Utd:' Scientific ...... 400

Whatman.; Reeve

Angel. ...
Yarrow / ...
ClydePet-
Marineg.

305
365
118

iis

Anglo .. . ' American
Corp. 470

Blyvoor 461

DoornfMtein — 741
Kinross.. 481

Leslie- 78

Libanon; 7S5

. FALLS

British Sugar- 455
Brotherhood . CP.) -i,. 100
Gill and Duffos^.... 115
Horizon Travel 2(S
ICL — ,.^....>...'.-89

Ihtasun - 134

Saga Holidays 144

Same- Sound-. 58

+‘ 15

+ 12
'+ 20
+ 8
:+jio

15

16

31
22
6

32

- 10
-6
r- 10

- 7 .

- 3

- 6
- 6
- 4

‘ - ■ ’

Israeli and Syrian forces clash in Lebanon

BY DAVID US8NO ON THE ERAEU-LERANESE BORDER AND NO RA BOUSTANYIN IN BEffiUT

ISRAELI AND Syrian' jets
dashed near Beirut yesterday
as; Israeli ground forces pushed
deeper into Lebanon in a
second day of fierce fighting
with Palestinian guerrillas. '

' At least one Syrian aircraft
was reported to have been shot
down. Eariier a Syrian com-
mumqufi said several of its
troops were killed when fired
on by Israeli artiilery.

lit has been confirmed from
Damascus that Syria has moved
an armoured division into
Lebanon in the past two days,
to support the 30,000 peace-
keeping forces it maintains in
the country.

Syrian sources sa-id the
deployment was defensive but
added that any Israeli penetra-
tion of areas under Syrian
control would not be tolerated.
' The risk of a wider conflict
increased as the Israelis

appeared to . advance well
beyond the initial 25 mfles they
sasd was required to push
Palestine liberation Organisa-
tion forces out of artillery
range of northern Israel.

. Further - massive Israeli
reinforcements were reported
to be streaming northwards
towards the Lebanon border.
The convoys were said to. in-
clude tanks, heavy artillery,
armoured personnel-carriers
and a range of other equipment

Mr Philip Habib, the U.S.
special envoy, held talks yester-
day evening in Jerusalem with
Mr Mena hem Begin, Israel's
Prime Minister, and is believed
to have delivered a warning
from President Ronald Reagan
against permitting warfare in
Lebanon to escalate to a direct
dash with Syria.

Even before the' pah- met. the
rapidly-moving invasion force

Golan

ISRAEL ;

had captured the major
Palestinian positions in
southern Lebanon, The Israeli

MR SHLOMO ARGOV, the
Israeli Ambassador to Britain,
was still critically 111 yester-
day in the National Hospital
Tor - Nervous Diseases, Lon-
don. His condition was
M critical but stable”

He was shot In the head
on Thursday when leaving a
reception for diplomats at the
Dorchester Hotel-

Three Arabs charged with
his attempted murder were
yesterday remanded in cus-
today at Bow Street court,
London, to appear on
Thursday at the Wgh-securtty
Lambeth magistrates court,
south London. Ball was
refused,

army said in Tel 'Aviv last
night that Tyre, on the Mediter-
ranean coast,. Nabatieh and

Beaufort Castle in central
southern Lebanon, and Hasbaya
in the east, had all fallen

It was confirmed also that
Israel staged a successful land-
ing of mixed forces, including
tanks, just north .of Sidon.
These troops linked up with
Israeli units from the south and
surrounded the city, Lebanon’s
third largest with a population
of 250,000.

Israel continued to issue
limited reports only on the
fighting. General Rafael Eitan,
the Chief of Staff, did say, how-
ever, that M the major un-
expected development ” was the
fact that the advacmg forces
had achieved their targets
twice as quickly as had been
expected.

Gen. Eian said that in the first
24 hours of the invasion Israeli
forces virtually had completed
their mission, to push the

Palestinian artillery northwards
out of the area from which the y (
could shell Israel
The mission was continuing,
he said, to pursue the objective
of destroying the Palestinian
bases throughout southern
Lebanon.

Later Mr Begin flew by heli-
copter to Beaufort Castle, north
of the. Litani River, to see the
Israeli flag raised and to con-
gratulate soldiers who captured

this Palestinian stronghold from
which shells had been fired at
Israel over the years.

The Israeli Cabinet was called
into urgent session, last night
to hear a report from Mr Begin
on the message which Mr Habib
had delivered from President
Reagan.

The invasion of Lebanon, Page
20; other Middle East stories.
Page 4

Stress on harmony
as Reagan flies in

BY PETER RfDOQLL AND DAVID TONGE

SENIOR OFFICIALS hi London
were yesterday eagerly trying
to stress ttiat /there was
harmony between the UK and
the U.S. as President Ronald
Reagan arrived for his twtMfay
state visit.

Any hint of disagreement
over the Falklands crisis was
being played down following the
muddle and confusion over
Friday’s vote at Hie United
Nations Security Council on a
ceasefire resolution.

There are no Whitehall
grumbles about the military
assistance being given by the
U.S. asid the. U.S. has put no
pressure on Britain, to hold up
action on the Falklands.

Instead, British officials con-
tinued to stress the “new and
continuing rale " they saw for
the- U.S. in ensuring the
security of the Sfatklanders
asaiasi-’ any. future Argentine
raids. The British believe that
President Reagan toft the door
open to such ideas when
approached by Mrs Margaret
Thatcher, the Prime Minister,
on Friday before the seven-
nation Versailles summit

Officials in Whitehall stressed
yesterday that only some
sections <rf the U.S. Administra-
tion appeared to insist that U.S.
particip®tion in ' security
arrangements would require
prior Argentine approval.

There are, nevertheless, dear
signs of dismay in Whitehall
about the U.S. behaviour at the
UN; The British view is that
the amendment ‘ made to the
draft resolution on Friday was
insignificant, and did hot justify
Mr Alexander Haig, the U.S.
Secretary of State, cancelling an
earlier order to bade Britain by

British forces bomb
Argentine positions
around Port Stanley

BY BRIDGET BLOOM, DEFENCE CORRESPONDENT

Ashley Ashv/Qod

President Ronald Reagan and Mrs Nancy Reagan arriving
in Britain last night

vetoing tbo draft.

U-S. support for the retaking
of the Falklands is appreciated,
but some ministers dose to Mrs
Thatcher are uneasy about
speculation concerning U.S.
ideas for the long-term future
of the isiamdv involving discus-
sions with Argentina over
sovemgsrty, ...

However, officials insisted that
none of the leaders at Versailles

sought to suggest to Britain
what it should do, though all
were concerned about how to
ensure hostilities stopped once
Britain repossessed the islands’
and how economic sanctions
could help at this stage.

Opportunities for direct talks
Continued on Back Page

Everyone has their way. Page
21; other Falklands crisis
stories, Page 5-

BRITISH FORCES are tighten-
ing their noose around the
Argentine garrison in Port
Stanley, according to reports
from the Falkland Islands.

The Defence Ministry yester-
day confirmed that Argentine
positions close to Port: Stanley
had been bombarded and that
British positions bad been
bombed by Argentine Canberra
aircraft. There were no
casualties.

N As has been- its practice over
the past few days, the ministry
only confirmed reports from
correspondents with the troops
on East Falkland. These pro-
vide the only direct information
of the campaign to recapture
Port Stanley and repossess the
islands.

The fullest report yesterday
came froth Michael Nicholson
of ITN who reported that
marine commandos have .estab-
lished strong positions lit the
mountains north of Port Stanley,
outflanking the Argentines.

“British sea and land forces
control and move freely along
the northern waters of East
Falklands and large quantities
of stores, guns, ammunition and
men have been moved up thse,”
Nicholson said.

It was not clear whether this
is the result of the “extra-
ordinarily daring ” operations
which he reported at the week-
end.

Nicholson did not indicate the
time of the 'actions he reported.
Most despatches from corres-
pondents with the task force are-
delayed for 24 hours or more

either on the spot or by the
Defence Ministry in London.

British strategy appears con-
stantly to harrass the estimated
6,000 Argentine troops from
land and sea, capturing key
positions from them ' and so
wearing them down that they
would surrender before the
fight was taken into the town
itself.

Nicholson spoke of British
forward . positions being
reinforced with anti-aircraft
Rapier missiles. He refers also
to what appears to be sabotage
operations by special SAS
troops: “ There have been other
operations . . . that one officer
described to me as nuisances of
every IdmL”

Nicholson said British com-
manders appeared concerned
that Argentina would try to use
West Falkland “as a bargaining
chip against us if wo are forced
into a ceasefire." There are an
estimated 1,500 troops on West
Falkland who have so far been
outflanked.

Other correspondents have
reported that up to 50 residents
of Fox Bay are being held in a
house by the Argentin garrison.

All reports make clear that
the weather is a continuing
hazard for attack and defence
alike. Nicholson says: “The
weather has been atrocious.
We’ve had seven consecutive
days of high winds and constant
freezing rain. The men on the
mountains are enduring the most
appalling conditions, sometimes
snow, sometimes ice, always
mud.

Interest rate

decline

continues

By Paul Taylor

SHORT-TERM interest rates In
the UK continued to ease yes-
terday, while the dollar
strengthened in the currency
markets -amid unease about the
war in southern Lebanon.

The decline in UK interest
rates continues a pattern
established last week and raises
further hopes of a cut in bank
base rates.

Short-term rates fell about
1/16 of a point, with the three-
month interbank deposit rate
slipping to 125 per cent, down"
9/16 of a point on the week.

The decline reflects con-
tinuing optimism about the
outcome of the Falklands crisis
and the relative strength of the
pound. The clearing banks
are, however, in no hurry to
cut base rates and will be
watching today’s banking
figures with particular interest

Hopes of a base rate cut_
have been strengthened by an
apparent slight shift in Bank
of England money market
intervention policy.

Although the Bank does not
appear to be actively encour-
aging a base rate cut — it is
following rather than leading
the market — it is thought it
would not now block a cut if
the banks felt the move was
justified.

Yesterday, as on Friday, the
Bank lowered its dealing rates
during its money market opera-
tions, buying bank biUs of less 4
than one-, two- and three-montia
maturities at reduced rates.

The UK interest rate decline
yesterday was in sharp contrast
to continental rates, which were
all higher.

Six month Eurodollar deposit
Continued on Back Page

World stock markets, Page 34

Machine for the modem Mozart

BY CHARLES SMITH, FAR BAST EDITOR IN TOKYO

A MACHINE that might
have enabled Mozart to
double bis musical output —
assuming a willingness to
compose in eight basic dance
rhythms— has been developed
by Nippon Gakki, the parent
company .of the ’ Yamaha
group.

The PortaSound MP1, as
Yamaha calls it, is an' elec-
tronic keyboard with a
difference. It is equipped
with a computerised micro-

printer that can write ont
melodies as they are being
played (down to the last
semiquaver, but not as yet
down to demi-semi quavers or
smaller).

The MP-I will also correct
minor irregularities in per-
formance and has memory
which ean not only play back
what the machine has just
heard but can also transpose
it into any chosen key.

A duet function win add

suitable Inside harmonies to
the top line of a melody while
another row of knobs gives
the choice between a series of
ready-made rhythmic accom-
paniments ranging from
waltz to samba and from
bossa nova to rock jazz.

You could even compose a
march (in four beats to a
bar) and have It played back
as a waltz (In three beats to a
bar), although Yamaha admits

Continued on Back Page-

Start of oil spot market prices coverage today

A DAILY report on the oil spot
market, giving latest prices paid
for cargoes of crude oil and
refined products, begins today.

The report, much requested
by readers,, will be carried on
the Commodities Page, which
today is page 30, alongside the
wastHlng report on the gas-oil
futures market. The service
provides? prices, in dollars per

barrel, and the change on the
previous day, of five types of
crude oil.

These are Arab Light used
by the Organisation of Petro-
leum Exporting Countries, as
the reference for pricing pur-
poses; North Sea Forties- crude,
adopted by the British National
Oil Corporation and. other pro-
ducers as the UK reference oil;
Arab Heavy and Iranian Light,

representative of the main
Middle East grades of crude;
and, Nigeria's Bonny Light -oil,
an O pec-produced competitor of
North Sea crudes.

Prices in dollars per tonne
are given also for three of the
main refined products traded in
the oil spot market — premium
gasoline, gas oil and heavy fuel
oil.

CONTENTS

Invasion of Lebanon; Israel strikes at
the PLO 1 -20

Versailles summit: everyone has their
way 21

Around Britain: the economic problems
of tie, .Solly Isles 13

Technology: the' instant news torn.
Versailles 14

Commercial law; director disqualified

Jor. not delivering accounts 15

Management: ICFC’s shifting strategy 16
Editorial comment: banking; European

steel industry 20

Lombard: ■ Max Wilkinson on the
obstacles- to corporate- bonds 21
Survey: small business systems ... inset

Amarican Nnm 8
Appointment* ..... 13

Arts 19

Base Rates 14.

Business A3v, ...... 18-18

Commoditite 30

Companies UK ... 22, 23

Crossword 19

entertain. Guide 18
Euromarkets — .... 31

Euro Option* 22

Suropaan News — 2,3

FT Actuaries .. — , ■ 35 .

Foreign Exchanges 3$

Gold Markets — .. 30

Inti. Companes ... 31-33
Leader Page *■ — - 20

Lax — 40

Utters 21"

Lombard — 21

London Opdons 23..

Management ...... 18

Man and Matters . 20

Mining ....... — — 23 .

Money Mutate 38

Omreaas News ... 4

Racing 16

Share Information 38, 33
Stock Markets!

London 35

Wall Street 34

Technology ......... 14

. Bourses 34

TV and Radio 15

UK News:

General — 9,10

12

Labour

Unit Trusts:

Authorised 38

Other* 37

Weather 40

World Trade New* 8

World Value £ - 35

ANNUAL STATEMENTS

Reed International . 23

Flemming Far East 22

PROSPECTUS AD
Argyll Foods , — - 24-38

For latest Share Index phone 01-246 8026

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77

2

EUROPEAN NEWS

Financial Times Tuesday Jime g' 1982 : .

‘Greeks’ challenge pattern of West German politics

BY JONATHAN CARR IN BONN

MEET THE new parliamentary
force in Hamburg, home city of
Herr Helmut Schmidt, the West
German Chancellor. Its mem-
bers sport “ Go home — Reagan ”
•badges, oppose nuclear power
(as well as nuclear missiles)
and demand immediate steps to
clean up the polluted Elbe
• river.

With its success in Sunday's
elections, this so-called " Green
Alternative List” (Gal) has
■ not just thrown the future
.shape of the Hamburg govern-
ment into doubt. It has also
-probablv hastened the end of
•Herr Schmidt's Left-Liberal coa-
lition in Bonn, and raised ques-
tions about how stable a
national government might
emerge from a future general
election.

Those seem big claims on
.behalf of a group which gained
■"only" 7.7 per cent of the
Hamburg vote. After all, the
two big parties. Herr Schmidt's
Social Democrats (SPD) and
the Christian Democrats (CDU).
won 42.S per cent and 43.2 per
cent of the vote respectively.

The key point is that, by
Increasing its vote from 4.5 per
cent at the last Hamburg elec-

tions in 197S to 7.7 per cent now,
the Gal crossed the 5 per cent
threshhold— the minimum sup-
port needed to gain parliamen-
tary’ representation. Hamburg
thus becomes the fifth provin-
cial legislature (after Bremen,
Baden-Wttrttembers, Berlin and
Lower Saxony) where the
Greens or the Alternatives — the
name changes from place to
place — have seats.

This is a deeply worrying
development, above all for the
liberal Free Democrats (FDP),
who have played the role of a
responsible ' “ thi rd force ”
throughout much of West
German post-war history and
who have formed the Govern-
ment with the SDP in Bonn
since 1969.

In the elections in Lower
Saxony earlier this year the
FDP gained more than 5 per-
cent, but was still pushed into
fourth place by the Greens. In
Hamburg the Liberals won only
4.S per cent and stay out of the
local parliament, despite inten-
sive campaigning by Herr Hans-
Dietrich Genscher the FDP
chairman and Foreign Minister.

That FDP result is enough
in itself to make the Liberals

The end of a. beautiful
friendship? Sunday's .
election results in his
home city of Hamburg
were not just a personal
blow for Chancellor
Hehzmt Schmidt (right)
but may also lead his
coalition partner Herr
Hans Dietrich Genscher
(left) away from their
12-year partnership and
towards the opposition
Christian Democrats*

'Wmgm

still more nervous partners for proving a serious liability in' suffered in Hamburg — tradltion-
the SPD in Bonn. It strengthens - the provinces. ally a stronghold of moderate

the hand of those in the party But the FDP failure has also Social Democracy. After gain-
who believe that attachment to been combined with the worst lag 51.5 per cent of the vote
the ; SPD at federal level is post-war result the SPD has in 1978 — and thus being able

This is not only a personal
blow for Herr Schmidt, who,
played a major role in the el«>
tion campaign,- bat for his fel-
low citizens of Hamburg, Herr
Hans ApeVSPD Defence Minis-
ter in Bonn-,- and H&rr Herbert-
. Wetmer, leadpr of. the SPD.
group in the. Bundestag ' (the
lower house of the Federal
PaHiament).

It- would be unfair to blame
Herr Schmidt for . the SPD
debacle, which, would almost
certainly have been satin worse
without his efforts. The' Chan-
cellor -remains the most popu-
lar politician in the ^country -
and has -constantly warned , his
■ own party against flirting with,
the radicalism of the Greens.'

It is in tods highly unsettling
atmosphere that the Bonn coali-
tion jpartners have $h&s week ’
begun talks on a supplementary
budget for 1982 and the budget
for 1983! The discussions would
have been difficult enough in
.the best of circumstances, .and
now they are tataing - place in
something like toe wiotrst: Last
to form the Hamburg govern- year, similar talks on Increased

ment alone — the SPD must- now state borrowing and budget cats
content itself with being only — made necessary above ail by

the second strongest parliamen- the growing bill for the ttnem-

taiy party, after the CDU.

ployed— brought the SDP and

FDP dose to a break. This time
:tbe strain win be greater stilL

To make matters worse, the
EBP is due -to trite a decision
: In about jtO days dn 4ts strategy
for the key election in- the stale
of Hesse in Sepfentoer. Hesse
. is . the last' prdviadal state
where an- SFD-FBP ' coalition
still exists. If the FDP in-Hess*
votes -to switch its.- 1 allegiance
there to the CDU— and tins is
now highly likely— then the
blow ... to the. - Bonn, .alliance.
w&uM be very grave indeed- . -.

It could create an atmosphere
In Which farther co-operation
between the government
partners— not least, on budget
matters— would become impos-
sible. The writing would then
be' on the wall far the SPD-FDP
in Bonn, after a remarkable
term of more than 12 years'
uninterrupted office.

It is imelear ' What would,
replace it. The <3>U . Ss .natur-
ally delighted by its Hamburg •
result — its best , ever in that
city— -and is prophesying similar
triumphs • elsewhere. But ' b&
hind the scenes it is almost as
unseltfed by tire success of She ;
Greens as ere the Government
parties.

French imports
of oil fall
17% in April

Bonn rejects British Airways fares plan

BY LESLIE COUTT IN BERLIN

PARIS — French imports of
crude oil in April were 6,629,100
tonnes. 17.2 per cent below the
figure d year ago. according to
customs figures released yester-
day. The cost is provisionally
estimated at FFr 10.8bn
• (fySBnij, down B.4 per cent
from April 1981. |

Over the first four months of
the year, oil imports totalled
28.006,005 tonnes, down 16.6
per cent from the same period
last year.

. Saudi Arabia accounted for
38 JJ per cent of France's overall
oil imports in April, down from
its 49.5 per cent share a year
earlier. AP-DJ

THE West German Government
has rejected a plan by British
Airways to cut by 43 per cent
its air fares between West
Berlin and Hanover, fearing
it would increase -pressure on
the Government-owned Luft-
hansa airline to reduce its -own
fares in West Germany.

BA. as a result, said it will
reduce its Berlln-Hanover
Iliglits by up to two a day
during July and August from
the present eight This would
be the lowest level many
years on the route where BA
has suffered sharp declines In
traffic because more West Ger-

mans are using : the East
German autobahn to West
Berlin which was modernised
at considerable cost to West
Germany.

The rejection of the proposed
BA standby fare for July' and
August marks the first time the
allied air attaches in Bonn have
turned down a request to lower
air fares from BA and PanAm.
the allied carriers serving West
Berlin. They told BA the
decision was taken after close
consultation .with .- the ' West
German Transport Ministry and
“ taking into account ” the com-
mercial air fare structure in

West Germany.

The Bohn Government also
said it would be unable to
provide a passenger subsidy for
the proposed lower fare as it
does for regular fares between
West Berlin and the nine West
German cities served by the
two allied carriers. The current
subsidy for the DM 192 (£46}
round trip fare between West
Berlin and Hanover is DM46
(£11). BA was proposing to
drop the fare to DM90 (£21)
on a standby basis.

Lufthansa has long opposed
standby fares and other reduc-
tions which would lower the

profitability of its domestic air
service. It is one reason the
West German airline has man-
aged to return a profit, albeit
.a dwindling one, while most
other airlines report record
losses.

British Airways said that if
the Berlin -Hanover standby
fare had been successful it
would have lowered fares on
its other West German routes.
Lufthansa's fares per kilometre
within West Germany are
considerably higher than those
charged by BA or PanAm on
their Berlin routes, even with-
out the passenger subsidy.

Jaruzelski
hints
on curbs

By Christopher Babins ki
in Warsaw.

Trial opens in Italy
of group charged
with armed rebellion

POLAND’S military leader,
General Wojcrech Jaruzelski,
has implied that restrictions
could be eased if internal
opposition . ceases and
** external intervention and
discrimination” by .the. West
comes to an end. The implica-
tion was contained in a
speech he made last week in
Bucharest and which has been
quoted by Poland’s state-
controlled media.

The intention, evidently. Is
to shift the blame for the
continuing martial law restric-
tions on to the West and the
Solidarity union's clandestine
operations oh the eve of the
Nato summit meeting this
week.

BY RUPERT CORN-WELL IN ROME

ft •

V. •>

■ J?,- .

v -”‘

Vv..'

■In

- - \ The face of Welsh industry has changed
dramatically in the past few years.

V" So, indeed, hasthefece ofourworidorce.

^ Because most of what we produce these
' daysccmesfrom above ground.

^Rather than below it

'in feet, the high technology and
engineering industries now account for around
[ 40% ofourmanufecturing employment

Which has to be a change fa the bettec
Ifes, there have been redundancies.

. But there have also been thousands of
s created by hundreds of companies new to
iesL .

W&e host to a host ofhousehold names.

The meeting -is expected to
discuss policy towards Poland
In the light of the scant
progress towards the fulfill-
ment of the Nato call for the
lifting nf martial law, freeing
of internees and a resumption
of talks with Solidarity. Talks
on rescheduling Poland’s
government debts have been
stalled with Western govern-
ments because these condi-
tions have not been met

The government daily news-
paper, Rzeczpospolita, said
yesterday that ** there are
reasons to expect farther
official moves aimed at easing
the difficulties and restrictions
on normal life.”

ONE OF Italy's most controver-
sial post-war trials began here
yesterday, with the opening
hearing against 71 members of
Autonomia Organ izzaba, the far-
left organisation accused of
plotting to overthrow the Italian
state during the 1970s.

The trial, in the same heavily
guarded courthouse being used
for the current Red Brigades
terrorist hearings, was immedi-
ately ■ adjourned until Novem-
ber 7. The deday is to allow
completion., of the latter.; with
which toe Autonomia case is
closely linked. . .

‘ Two more important police
successes against terrorism
have coincided with toe begin-
ning of the trial. A member
of toe Prtina Linea (Front
Une); group was arrested in
Pans at the weekend, and the
Carabinieri para -military police
in Rome yesterday soezed Remo
PaztceUi, one of toe top Red
Brigades commanders still at
large.

Yesterday’s court -session was :
the belated consequence of two
waves of arrests in 1979 in
Padua and elsewhere, of Pro-
fessor Toni Negri, Autonomy's
leader, and alleged associates.
They are accused not only of
specific terrorist crimes in toe
early 1970s. but of having been
the ideological-, mainspring .of
the movement which spawned
the Red Brigades and other

left-wing extremist groups. ..

Of the 71, 25 have been held
in prison — some, including- Prof :
Negri, for more than three
years. A further 30 are free bn
bod,, while 16 are on toe run.

Of the 46 charges they face, the -
most serious is “ armed insur-
rection against toe state,” an
accusation never brought before
in post-war Italy.

At oiie point, indeed,- it: was
argued that Prof Negri had been
the strategist behind the 1978
kidnap and murder of Sig Aldo :
Moro, ‘ the former Christian
Democrat Prime Minister, which -
is the crime at the centre of the
present trial against 63 Red
Brigades terrorists. That
accusation, however. Iris - since
been dropped. ’

- In the meantime, ..serious
divisions have surfaced among
several of the magistrates
involved with the Autonomia
case. Defence organisations
Have emerged claiming that the
trial is little more than a witite .
hunt; .afcnmUti: di 5 prediti«^*Y . i
entire independent Left (ie, to ■*
the left of the Communists) -in
Italy since toe Sate 1960s..

This factor, coupled with the'
length of time some defendants •
have been held without bail, has
aroused considerable digqulet,.
extending outside Italy. ;
Amnesty International is due to ~
send Observers when the’ trial ..
begins in earnest in November.

Like Sony Whose chairman, Mr Akio
Morita, has, gone on record as saying that
oductivfiy.ahd labour relations athis
ridgend plant are every bit as gqodasback
iome.

Small wonder then that Aiwa, National
L Panasonic and GEC-Hitachi live *

It quoted Gen Jarnzelsld’s
speedt made last Friday while
on a visit to Romania. The
general said: "We are
creating the conditions for
the creation of national
accord including all those
forces which recognise ' the
paramount ininportance of the
interests of the Socialist
state ... if there are no
internal disorders, if toe
external interference -and
discrimination ceases then a
serious step to this goal can
be made,™ •

THE FACTS ABOUT OUR WORKFORCE

r ii ■

FINANCIAL YlMES, published dally
except Sundays and holidays. U.S.
subscription rates $365.00 par annum.
Second Class postage paid at Naw
York. N.Y., and at additional mailing
contras.

TWO MORE former Irish
cabinet ministers have joined
in toe criticism of the political
style; and strategy of Mr Charles
Haughey, toe Prime Minister.

They lent their support yes-
terday to remarks by Mr
George Colley, Mr Haughey’S
former deputy, which were seen
in Dublin- as, an attack oil the
government leadership. Mr
Colley’s charge that, seme
recent domestic political
“deals” in .Ireland could under-
mine democracy was backed by
Mr Jim Gibbons, a former
Minister for Agriculture, and
Mr Robert Molloy, once, a
Pef ence Minister.

Mr Gibbopd said Mr Colley’s
comments had “needed to be

said ". Mr Molloy claimed the
former Deputy Premier hid

articulated concern felt by a
k>t of people throughout toe
country”.

The latest rumblings against
Mr Haughey from within his
own Fianna Fail party mark
the second display of dissent
since last February’s general
election which won him minor-
ity power in Dublin. .

Mr Haughey later beat off a
bid to replace him as party
leader following allegations
that he had become an electoral
liability. • Now though, -that
suggestion has been revived
after Fianna. Fail's disastrous
showing in a Dublin by-election
last month.

Agencies

-'SMb

< • . • '•<>*

fl

practically next docs:

Our manpower makes Fordk horsepower
toaEscart engines to be precise.

And there are no prizes fa guessing
; where Control Data and BICC are based.

Of course, we’re delighted by the arrival of
j- so manynew faces.

B ecaose together, they're changing ours.^

for more inforniatioii about what Wales
f has to ofier your business call Ted Cleaveley or

■ David Morgan onTrefaest (044385) 2666.

Or completelhe coupon.

P$h; :

■MMiiW&k' "" " " ^

NOTICE OF BEDEMPTION

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HEREBY GIVEN that pursuaiit tothe provisions o£ the almro-mentiaiied indenftn^

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\ Heasetdl^mehowniybntoiessv^d benefit finmamoretoVfa^

□ fistoties available O investment fimds

«» umiea st at es or JU&eoc& as at the time of
Ment of public and prinUe debte. Said Debenttuee will

bolder either (a) at

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TaVkHshDcvdqmient Agency. Rmtjrpidci

MiH n iamiw an-; CKV7- 51 IT.

FT/23/82

Financial Times Tuesday- June ;s 1982

EUROPEAN NEWS

;• , j-.rcvTT'

Robert Graham, in Madrid, analyses civilian and army opinion now the coup bid tribunal is over

43.5% of EEC
to

BY JOHN WYIES IN BRUSSELS

; NEARLY two-thirds of the

- recently agreed £476jmt . rebate

- on Britain’s 1982 EEC badge!

. contributions will be paid by

France and Italy under pro*
posals which look likely to .be
adopted by the European Com-
mission tomorrow. .

- For France in particular .this '
represents a much, larger shar e
. of the burden of reducing
. Britain’s payments than it had
r to bear in financing rebates '

. paid to London in 1980 and .
1981. But -this is apparently
the price to be paid for the
. , important concession granted

- to West Germany when the 1982 -
deal with the' UK .was agreed -

- two weeks ago. , r

On Che basis of its normal
payments to the EEC. Bonn
should be funding around 36
* per cent of the Britisch rebate.

; But it fought successfully for-
only an 18 per cent share’
amounting to £35. 6m (153m
European currency units) on
the grounds that it could iot
afford more, because' of. its
public spending problems.

In addition, Ireland and
Greece will be given a special
dispensation from, paying their
full share because of . their
“less prosperous” status. De-
spite having tor pay 20 per cent
= of the British "rebate under the
! Commission’s proposal, Italy
too will be receiving some relief
from what otherwise would
have been its full burden.
Meanwhile, around Z? per cent
: of the total will be pakThy
' Benelux and Denmark.

■ Commission officials are 'hop-
, ing their plans' can be adopted
without the issue having to be

dealt with by EEC ministers.
But several delegations expect
some tough haggling which may
need to be resolved by foreign
ministers at their meeting in
Luxemburg on June 21.

The French attitude will be
crucial; On the .one band. Paris
would, under the Commission’s
proposals, have to carry 43.5
per cent of the British bill. On
the other, the £207m (369.75m
Ecu) compares- with less than
£244. 8m (437.3m Ecu) France
paid last year on a 31 per cent
share. •

This Vis because the 1982 re-
bate accepted under pressure
by Britain is some £257m less
than it received last year.' Simi-
larly, Italy’s share of the cost
.would rise from just under 17
per Cent last year but the size
of the cheque would fell from
£L34m to £95J2m.

Hie smaller sums of money
involved should do something
to soften the impact of the con-
cession to West German intran-
sigence. But all governments
know that they have to try to
negotiate a longer term deal
with the UK in the autumn and
that the terms of the 1982 deal
could set an important pre-
cedent

Those funding the British
deal are particularly worried by
the fact that West Germany has
already given notice that it will
only pay a quarter of its normal
share of any future rebates for
Britain. This could take
France's share of the cost to
well -over 50 per cent and could
be a cause of domestic con-
troversy.

Rubrgas moves into
overseas exploration

BY KEVIN DONE IN FRANKFURT

RUBRGAS, the dominant West
German natural gas importer
and distributor, is to- start
- diversifying its activities into,
overseas exploration.

Its first venture will be. in
’ Cameroun, where it has bought':
a 20 per cent interest in- an.
I exploration, concession Ie# ; by
, Eif Aquitaine, ; the’Trench ofl.

' and gas group. - The- licence
' covers an area off tbe south
coast of the West African state.

• Seisnological tests are being
carried out in preparation for.

■ the first drilling programme.

Estimates suggest the con-
cession area contains up to

• 75bn cu metres of natural gas.

' Cameroun is estimated to have

around 750bn cu metres of,
possible reserves, of which'
some 220bn have been proven.

For Ruibrgas, one of Western ;
Europe’s biggest natural gas
. purchasers, the move ; into
exploration marks an important ,
: step in its strategy of ensuring

• access to new production areas
as they open up around the

. world.

West Germany draws its
foreign gas supplies from the
Soviet Union, Norway and the
Netherlands, with 32 per cent
'of dfc heeds beaag covered from
domestic production.

It has previously conducted
^negotiations with Algeria and
Nigeria’ -over the supply of
LNG '(liquefied natural' gas)
although, both projects have
been frozen- because of prob-
lems in the producer countries.
It is also carrying out a feasi-
bility study with Canadian
energy • companies that could
lead to the delivery of gas from
the Canadian Arctic to Western
Europe in the 1990s.

; Dr Klaus Liesen, Rubrgas
chairman, said that other
exploration projects besides
Cameroun are also under con-
sideration. The West African
state, is already working on . a
scheme to exploit previous gas
finds with the. aim eventually of
exporting 4-5bn cubic metres of
LNG -a . year, probably to
Western Europe,

Ruhrgas results and gas takover,
. Page 32

Spanish society deeply divided by trial

WHEN SPANISH Members of
-Parliament emerged on the
morning of February 24 last
year, bleary-eyed and exhausted
from -having spent 18 houze as
hostages under the gnn* of ,tbe-
rebel military, they were nn-
.animous: the authors of the.
abortive coup which had. seen
Parliament, the principal insti-
tution of democracy, humiliated
had to be severely punished.

; Such punishment has, how-
ever, failed to materialise. Last
week the military tribunal try-
ing the 32 officers and one
cmBan .for the abortive coup
handed out lenient sentences.
Only General Jaime Milans del
Bosch, who placed the Valencia
military region under martial
law, . and Colonel Antonio
Tejero, the Guardia Civil Officer
who led the seizure of Parlia-
ment, received the maximum -
30-year sentence demanded by
the prosecution. Of the rest, 11
were absolved of guQt, and only
10 will be expelled from the
armed forces.

It is this aspect which has
caused the. greatest indignation
among Members of Parliament
and in the Press. Officers who
took an active part in trying - to
overthrow Spanish democracy
will be permitted to retain their
ranks and rights to promotion- —
and have men-at-arms under
their command. Not surpris-
ingly, the Government of Sr
LeopoMo Caslvo Sotelo has
invoked its powers to appeal
against the sentences, which
will shortly be lodged in a
civilian appeal court

As the indignation begins to
die down, however, a -number
of commentators have under-
lined that the verdict also needs
to be seen from tbe military
point of view. The 16-man
tribunal (it ended up os 16 after
the original president was
forced to retire because of an
ulcer) was judging companions
in arms. Furthermore, in their
youth the members of the
tribunal bad rebelled against
the established order at the
outbreak of the civil war.

Public sector
debt ‘limiting
Nprdic growth’

By Wilfiam DuHforen
in Stockholm

THE WEIGHT of interest pay
ments on public sector debt is
limiting severely the ability of
Nordic governments to adopt
more expansionary policies
according to “ Business Out-
look,” a biannual report pub-
lished by Copenhagen Handels-
bank. . Den Norske Credltbank,
Tj C^nsallis - - T* apklri and

Svenska Handelsbanken.

Increasing unemployment
slow growth and “unaccetably
high” inflation rates are singled
out in the banks' description of
the economies of the four
nordlc . countries. Aggregate
growth is forecast at about 1
per cent in the area this year,
• Budget deficits have been
increasing swiftly in all four
countries, including Norway if
the state revenue from North
-Sea oil . tax is excluded. In Den-
mark, interest on the domestic
national debt is running at
DKr 13hn (£930m) a year, while
interest on the Swedish state
debt will be more than SKr 39bn
(£3.75bn) in the 1982-83 budget
year.

For ten years we have been ...
a major part ofWhitbread’s
expansion pn^ranime.

Recent building projects
indude their new Wniibiead^
London Headquarters at Luton, a
new distribution cenmsand office
headquarters at Cardiff, Beckton
and Maidstoriebotding and dist-
ribution plants and currently tie •
major Chiswdl Street Brewery
Redevelopment' which allmafee „
up a continuing success storp, _

Iftthesortbf; '
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Because witheveiy
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Willetthaveputthe • .
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bined with our technical
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01-6892266

Madrid wants Nato to form fourth comma]

THE SPANISH Govermnent
would like to see a fourth
Nato command established
(that covered Spanish ter-
ritory exclusively. The issue
has already been raised in
private and will be discussed
formally now that Spain is a
full member- of the Atlantic
alliance ' writes Robert

■ fi r s t bo rn.

Spain feels that there are
inherent difficulties in accom-
modating Mb own military
interests wttMn the three
present Nato command
structures. In particular, the

Spanish talk of a strategic are
running from the Balearic
islands through Gibraltar to
the Canaries which they do
not want incorporated into
the existing Iberian com-
mand, based outside Lisbon.

The Portuguese, for their
part, are sensitive to fire idea
of Spanish domination, of the
Iberian peninsular, now* that
Spain has joined . Nato.

Another delicate issue for
tbe alliance to resolve as a
result of Spanish entry is the
relationship of ‘ " Gibraltar
within Nato. Untfl now.

Spain has protested at the
use of the Rode for Nato
exercises. In particular. It has
objected to the presence of
British nuclear submarines.

The Spanish Government
is also keen to press the
alliance into accepting that
its two North African
enclaves of Ceuta and Mellila
are within Nate’s geo-
graphical limits. Dr Joseph
Lure, the alliance^ secretary-
general, has rejected such a
concept so far.

Significantly, at the
ceremony lit Brussels last

Saturday to mark Spanish
entry, Sr Jose Pedro Perez-
Lorca, the Foreign Minister,
went out of his way to stress
Spain’s links with Latin
America and disagreed
openly with British policy on
the FalMands.

Clearly, Spain feels a
degree of ambiguity still
about fts place in Nato, but
the conservative daily news-
paper, ABC, said yesterday
that Spanish membership was
the most important event for
the country since Juan Carlos
becanfa King.

It must hove been very pain-
ful for them to have sentenced
Gen Milans ’del Bosch: It meant
the expulsion from the army of
one of its most highly decor-
ated and illustrious sons. This
sadd, it was clear from the very
start that the military tribunal
had a completely different
philosophy towards persons on
trial than that of a civilian
court

The accused were confined
not to ceils bat to spacious
quartets. They did not even
seem to be obliged to attend
the trial every day. On several
occasions incidents showed that
the judges were afraid of
antagonising those on. trial. Gen
Milans del Bosch stormed out
of the court without sanction
when, he refused to listen to
evidence from one of the serv-
ing regional commanders with
a reputation as a democrat.

This benevolence was in static
contrast to the way in which
the court allowed itself to
submit to pressure from the
accused when they demanded
the expulsion of a newspaper
editor from the room. The
trial was held up until the
editor of Diario 16 was ejected.

The excuse: an article which
the accused considered offen-
sive. Last week the constitu-
tional court declared this
ejection to be uoronstiftulional.

The sentences are also in
stark contrast to those banded
out to the members of the
Democratic Officers' Move-
ment (UMD). This was a group
formed in toe twilight of the
Franco era to try to promote
democracy within the armed
farces. Trials of UMD members
went on as late as 1976 and,
although there was no sugges-
tion they were rebels, they
were expelled from the armed
forces. Even now tbe military
refuse to let UMD officers be
accepted back into the ranks
although their action, could be
considered constitution aL

To have expected the judges
to have behaved differently
ignores two important factors.
First, the investigation into the
coup attempt was pressed with
little vigour and designed to
pin blame on a limited number
of persons. The Government
was responsible for the investi-
gation. As many as 4,500 troops
were fully mobilised on the
night of February 23 but only

32 officers were brought to trial,
more 'than half representing
members of the Guardia Civil
involved in toe seizure of
parliament.

“ Significant figures like Gen
Juste, commandea* of toe Brun-
ete Armoured Division that
guards Madrid, were not
charged. Gen Juste was present,
according to toe trial evidence,
at a meeting in division head-
quarters where support for Geh
Milans del Bosch was discussed
and he failed to prevent a con-
voy leaving to back Col Tejero
in Parliament. There was a
feeling in toe armed forces that
a lot had got off soot free.

Added to this toe .terms
under which Col Tejero agreed
to leave Parliament involved
an understanding that no one
below the rank of lieutenant
would be punished. Tins pact,
apparently approved by toe
King, was also a precedent for
the court. The 280-odd Guardia
Civil ranks who took part in
the seizure of Parliament are
all back on active service.

Second, because the investi-
gation was so weak, it became
increasingly obvious that too
much evidence was hearsay.

Gen Alfonso Armada, former
military adviser to toe King,
was accused of being a joint
leader of toe coup and the pro-
secution demanded 30 years.
He ended up with six years, on
a charge of conspiracy, and
even for this there was little
proof to satisfy an Anglo-Saxon
court.

This sentence has been tbe
hardest to digest here as most
people operated on toe
principle that be was guilty
until proved innocent. Gen
Armada himself stubbornly
insisted throughout toe trial on
his innocence and was disliked
by the rest of the accused — he
was even given separate
quarters, such was the
animosity. The lack of proof
against this man, who was
alleged to be the link with the
Crown, indirectly helps dispel
all the accusations against King
Juan Carlos that he was behind
the coup.

The main lesson from the trial
is that justice for crimes against
the State should not be within
toe competence of military
jurisdiction. It runs against one
of the fundamental principles of
a democratic state: toe separa-

tion of powera.

Here, however, the politicians
are in good measure to blame.
When the reform of military
justice was discussed two years
ago, Parliament was extra-
ordinarily timid. Instead of
firmly subordinating military
justice to civil control, only,
limited reforms were made.

The most important change
introduced was allowing appeals
from military tribunals to be
made to civilian appeal courts*
But this, as will now be the case
with toe coup attempt, merely
provokes a damaging confronta-
tion between toe civilian and
military jurisdictions.

Other reforms which are now
likely to be introduced include
ensuring that persons convirited
of crimes against the State do
no stay in toe armed forces. The
authorities would like, but may
not have the courage, to tackle
some of the aspects of the
Guardia Civil code of conduct.
The Guardia Civil demands
‘‘ blind obedience ” to orders
from superior officers — some-
thing which permitted the
judges to exculpate the bulk of
the Guardia Civil on trial.

If much of the trial has
proved unsatisfactory, Spanish
democracy can take some com-
fort from the poor image of the
armed forces that the rebels
gave. With their frequent resort
to the argument that the coun-
try was going to the dogs, they
appeared as figures pathetically
lost and left out in the new
democratic order.

Apart from toe impetuous
action of Col Tejero and Gen
Milans del Boscb, most of toe
leading figures clearly bungled
on the night of the coup. Col
Tejero was right when he-
shouted at toe end of tbe trial
that a good many of toe army
officers were cowards: that they
wanted to change things but
were afraid to act The trial has
left a deep gulf between civil
and military society — -toe gulf
is probably more keenly felt by
toe armed forces.

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banks, and this offers distinct advantages— particularly to people
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more ready access to top-level specialists in departments like insurance,
exports, investments, etc.

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the way, business discussions between customer and manager become ’

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as a result.

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always sure of a quick decision. And the Bank’s response will always
be constructive, too. Our managers know' that people running smaller
businesses don’t have big accounts departments backing them up.

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People say all banks are alike— until they’ve been to
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a realistic assessment. D for Duration- don’t commit yourself to a

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B.S.137 (

OVERSEAS NEWS

financial Times yTai^ui^Siae:. 81982 1

ISRAELI INVASION OF LEBANON

Palestinians offer tough resistance

— i ■- .

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!■>£.' • ' ' • -
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BY DAVID LENNON IN METUUA, ESRAEWLEBANON BORDER

Chad rebel

THE ISRAELI forces were
meeting unexpectedly tough
resistance from the Palestinian
guerrillas yesterday, the second
day of their massive invasion
of Lebanon.

Fierce fighting was raging at
a number of points as th e
invading troops tried to destroy
Palestinian strongholds in
southern Lebanon.

The capture of Beaufort
Castle, a Crusader fortress
which dominates the northern
part of Israel, came only after
massive bombardments and
fierce hand-to-hand fighting
during the night through the
underground bunkers which had
been built under the castle by
the Palestinians.

Yesterday morning soldiers
on the border were peering
through their binoculars,
searching the mountain tops for
signs of an Israeli flag signify-
ing the fall of the major
Palestinian stronghold.

. An Israeli soldier, asked if
the invasion troops had
forgotten the flag, replied half-
jokingly; “No, iPs got tom on
the way up.”

Israel's announcement of the
capture of Beaufort was greeted
with joy, but many people on
the northern border expressed
growing concern about the
absence of Israeli reports on
the course of the fighting.

One veteran of the border
village of Metulla, Mrs Ayna
Belski, said this was a bad sign
which could indicate that the
battle was not going so well,
and that casualties may be
heavy.

Other locals, long familiar
with the troubles on the border,
commented that tins war was
clearly much- tougher than the
Litanl invasion’ four years ago'.
"The Palestinians are a real
army now, and' they are putting
up a real fight,” commented one
local. •

The noise of artillery fire
could be heard clearly on the
border as Israel's war to destroy
the FLO rumbled through its
second day.

At Khardaly bridge on the
Lttani river, the two sides
exchange heavy artillery
barrages as the Palestinians,
tried to block the Israeli
advance.

The target of the Israeli
thrust in this central sector is
the town of Nabatiya, a Pales-
tinian enclave from, which PLO
forces shelled and rocketed
northern Israel over the week-
end. •

. By yesterday, the firing into
Israel had stopped. , as the
advancing Israeli troops over-
ran Palestinian positions .. and
engaged others in direct battle.

There was ample evidence in
the' region that Israel expected;
the battles to continue fbr some
titnw as reinforcements could be
seen moving northwards along
the roads' in IsraeL •

Agencies add: Standing help-
lessly at a roadblock on the
Khardaly Bridge yesterday
were Gurkha soldiers of the
United Nations peacekeeping
forces assigned to the area in
■1978 in the .wake of the pre-
vious major Israeli invasion.

Lieutenant Snrfhir Axial,
commander of the outpost, who
arrived from Nepal only sis
days ago; said he had briefly
tried to stop, the invading
Israeli tanks aqd armour as
they rolled into South Lebanon.

“I argued with the Israeli
officers, but I did not even
contemplate resisting them with
. ihe few. firearms I have. We had
no chance,” he said.

Israeli Radio reported that
Prime Minister Menahem Began
flew, to Beaufort by helicopter
yesterday morning for ‘ a
briefing on the situation from
Defence Minister Ariel Sharon
and a talk with Israeli troops
there.

By Qttmtin Peel, Africa Editor,

■ ir- -jj: jb. '■

. . ■ t “ *

V. .'!•

Israeli Centurion tanks cross the Utani River in southern. Lebanon in their advance on Pales-
tinian guerrilla strongholds. Prime Minister Menahem. Begin says the forces are intended to
push the Palestinian Liberation Organisation forces out of a zone 24 miles north of Israel’s

frontier; '

Invaders ‘outgun’ opposition

ISRAEL HAS overwhelming
military superiority over Pales-
tinian forces in Lebanon, even
wben reports of a recent arms
build-up by the guerrillas are
taken into account, according to
western estimates.

Western defence experts say
guerrilla forces serving with
groups allied to the Palestine
Liberation Organisation (PLO)
have between 13,000 and 14,000
men. The Israeli armed forces
have 172,000 in all, a total that
can rise to 400,000 within 24
hours when reservists are mobi-
lised. Only a fraction is in-
volved in the current operation
in southern Lebanon.

The Palestinian forces axe
. composed almost entirely of
ground troops armed with light
weapons and rockets. ' Their
mobile and fixed anti-aircraft
batteries have long proved
ineffectual against the Israeli
air force, which dominates the
skies over Lebanon.

The defence experts believe
most of the few heavy weapons:
the guerrillas possess are fully
deployed, with little in reserve.
The heavy weapons include
Katyusha rocket batteries, used
to hit targets in Northern
Israel, and which may already
have been .lost to the invasion
force.

The guerrillas also have an
1 unknown number of. 130 jn™
guns and about 33 aged Soviet
T 34 tanks, the defence experts
said.

Israel has at least 3.500 tanks,
some of which it has been using .
in the present invasion. Its
armoured personnel carriers
contrast to the open trucks and
jeeps the Palestinian forces use
for rapid deployment

Israeli officials said recently
that ' the Palestinians had
doubled their firepower in
southern Lebanon in the past
year and were trying to obtain
sophisticated weapons, includ- '
ing surface-to-surface missiles.

EEC may
hold
special
meeting

Mubarak condemns Israeli action

BY CHARLES RICHARDS IN CAIRO

BRUSSELS — The 10 Euro-
pean ” Economic Communify
nations were yesterday con-
sidering holding a special
Foreign Ministers’ meeting to
review the Middle East situa-
tion following the Israeli ,
invasion of South Lebanon.

U.S. envoy bids to head off war

VERSAILLES — Mr Philip
Habib, the U.S. envoy, has
! arrived in Jerusalem, with new
instructions from President
Ronald Reagan, in an effort to
prevent the latest Israel-
Lebanon border fighting from
turning into an all-out war.

Mr Habib, who negotiated the
fragile ceasefire between Israel
and the Palestinian strongholds
in southern Lebanon 11 months
ago. stopped to confer with Mr
Reagan and other US. advisers
here on Sunday en route to
Israel.

Mr Reagan took time out from
a seven-nation economic summit
of the leading Industrial nations
to meet Mr Habib. U.S. admin-
istration officials said there was
little else the President could

do until Mr Hstolb reports the
results of his conversations in
Israel.

Although Mr Larry Speakes,
the deputy White House press
secretary, said the U.S. "pulled
out all stops” in seeking to halt
the fighting, U.S. officials
appeared reluctant to criticise
Israel

Mr Alexander Haig, the US.
Secretary of State, travelling
with the President, said his gov-
ernment was "extremely con-
cerned about the escalating
cycle of violence.” Asked
whether it was legitimate for
for Israel to use aircraft and
tanks supplied by the U.S., Mr
Haig replied:. “These are ques-
tions of extreme importance,
questions on which assessments

will be made in the hours
ahead.” He said the issue was
“not unrelated to the discus-
sions Mr Habfo will have in
Israel”

But Mr Haig refused to say
whether the administration
agreed with the condemnation
of Israeli violence issued by
President Francois Mitterrand
of France on behalf of the seven
nations represented at the
summit, which ended here on
Sunday.

At the UN, Mrs Jeanne
Kirkpatrick, the U.S. ambas-
sador, said it would “not be
reasonable or balanced or fair
simply to point a finger of
blame” at Israel for violating
the ceasefire, if reports of the
PLO shelling Israeli villages •

A spokesman for the
Belgian Foreign Affairs
Ministry said Greece
requested such a meeting on
Sunday, several hours after
the invasion began. The
request was addressed to
Belgium, the current presi-
ded of the EEC Ministerial
Council.

PRESIDENT Hosts! Mubarak’s
condemnation of the Israeli
incursion into southern
Lebanon is being expressed in
the strongest terms used by the
Egyptian Government since the
late President Sadat launched
in 1977 his initiative for peace
with IsraeL

' After meeting with his senior
foreign policy advisers, Mr
Mubarak called the Israeli
action “a flagrant violation of
international law” and
demanded an immediate with-
drawal of Israeli forces. He arid
that, the increased instability
and tension in the region will
affect the peace process.

His condemnation followed
hard on another similar state-
ment from the Egyptian Cabinet

This condemned' the assassina-
tion attempt on .'the Israeli
Ambassador in London, but said
it could, not justify toe
indiscriminate - killing of
innocent civilians, . including
women and children, in
Lebanon.

President Mubarak has
followed his statements by-
sending messages to President
Reagan and Mr Menahem Begin,
the Israeli Prime Minister , as
part of diplomatic moves to
press Israel into withdrawing
its forces.

Supporters of the peace
process— to which Egypt is
undoubtedly committed— -point
out that Egypt’s condemnation
is more effective than the
response from all other Arab

countries, which have no
diplomatic relations with Israel.
Last night. Egypt’s Ambassador
to Israel was ordered to deliver
a sharp note of protest to the
Israeli Foreign Ministry.

Now that Egypt has recovered
the remaining parts of its
territory to Sinai, lost to the
1967 war, it can afford to be
more flexible in its response.
How flexible is not yet dear.
Were Egypt to cut off diplo-
matic relations with Israel,
sufficient voices would be raised
in Jerusalem to call such a
move provocation- enough to
re-occupy the Sinai, from which
Egyptian forces have been
virtually excluded under the
terms of the peace treaty.

JTDJAMENA. fte capftal of toe
impoverished " -north 1 Afr i can
state of Chad; fdl yesterday to
the rebel forces loyal to
Iff Hisseue Habre, the -fanner
Prime Minister, according to*
French’ -officiate ■ . -and. _ new£

agency reports in Paris. : : -

The fall of. the cpaftal^
followed swiftly eo toe defeat cf “
the troops supporting President^
Goukoum Oueddei at the toftth 7
of Massaguet 5& males away, oh ,
'Saturday. Ho& ' of - , the 159*
French' natJonaSls' Hying in the]-'
town - ' were evacuated, toe-
agenries repotted. : . ." JT.

Diplomats said that the rebel**
Forces Armeesdu Nord. (FAN) ”

' entered NTyameua ' at 5 am; Ifed- f [
by M . Idris Mtekine; second in**
command to .M Habte. Thercr*
was little resistance, and few'if :
any civilian casualties. ’ v " •
About a quarter of the town's!?
population had fled across the V
river to' Cameroon on Su nday. -?

The collapse of the govern-^
meat forces win . how present-®
the Organisation of African
Unity with a dilemma, for itn
still has some 4,000 ‘men. Inc
Chad forming a peacekeeping
force, - although it “has palpably*:
failed to fulfil that role. . • rT
There' was no immediate?. -
news on the whereabouts' ofT
President Goukouni, althoughi
Reuters quoted an unconfirmed?
report that he had been killed?
while trying to cross the border j
into neighbouring Cameroun, a ■.
. M Habre’s spokesman in
Paris said yesterday that he
would set up a provisional gov-
ernment and : then try- to
organise a conference with tile j
other leaders to. reach a pertua-'
nent settlement of the 18-year-
old civil war. •

CHAD * ,

“Not ail answers are in
and no deddon about a
special meeting has been
made yet,*" the spokesman
said.

Reagan sends peace plea to Begin

He added that Foreign
Minister Leo Tlndemans, in
New Fork to attend the
United Nations disarmament
conference, "is being kept
informed of developments.”
Mr Tindeanans is ready to
return to Brussels Immedi-
ately.. . .

He flew to New York yes-
terday and was not scheduled
to return home until
Wednesday.

Agencies

Below is the text of a letter
from US. President Ronald Rea-
gan to Israeli Prime Minister
Menachem Begin. The text was
released in English by the Israel
Government press office.
FOLLOWING the abominable
shooting of Ambassador
(Shlomo) Argov and the subse-
quent escalation of violence, I
am sure you are aware of our
efforts with interested parties
to Europe and the Middle East
to urge that no further actions
be taken against Israel that
could only worsen the situation.
As we continue our efforts. I

hope you win give the most
serious consideration to the mes-
sage Ambassador (Samuel H.)
Lewis conveyed to you late
Saturday evening and will do
what you can to avoid military
steps that could lead to a widen-
ing of the conflict and .even
greater Israeli casanlties.

Secretary (of State Alexander
M.) Haig and I will he consult-
ing with Ambassador (Philip)
Habib today. Following those
discussions, if the situation per-
mits, we will ask him to pro-
ceed on his mission to the area
as scheduled. I hope you will

agree on the need to work to-
gether to bring about those con-
ditions which, over time, will
recreate a stable and secure
Laboncm and ultimately lead to
security on Israel's northern
border. •

I pray our efforts will succeed
to ensure that the -situation does
not go beyond the violence Of
recent hours. As you know, the
security of Israel remains of the
utmost concern to me.

• At least two rockets slammed
into the US. Embassy in Beirut
yesterday. There were believed
to be no casualties.

8 Be — «

BY K. K. SHAiRMA IN NEW DELHI

no-war pact Mugabe may ease line on investment code ®*“ di ^ b j a

PAKISTAN has sent a draft of
a no-war pact to the Indian
Government, but it was made
clear in New Delhi yesterday
that it was unacceptable to
India in its present form. An

official spokesman said that the
draft would require “codsider-

draft would require “consider-
able amendments, modifications
and additions.”

The draft is expected to be
discussed when foreign secre-
taries of the two Governments
meet in Islamabad next month
to resume the stalled dialogue
on normalisation of Indo-Paki-

stan relations. This was broken
off by India last February after
Pakistan raised the issue at a
human rights conference in
Geneva.

The contents of the Pakistani
draft have not been revealed.
Indications are that it is limited
to the no-war pact proposal.
India wants any agreement on
normalisation to be based on
more concrete institutions and ,
has suggested the formation of
a joint commission for economic
co-operation and the signing of
a treaty of friendship

BY OUR HARARE CORRESPONDENT

Japan Investment up 90%

THE ZIMBA BWE ■ Prime
Minister, Mr Robert Mugabe,
hinted at a softening of bis
Government’s attitude towards
an “investment code,” intended
to encourage new foreign invest-
ment on his return from his
three-week visit to Western
Europe.

The Mugabe Government has
hitherto rejected caii^ from
potential foreign investors for
such a code on the ground that
more than adequate protection
is provided in the Lancaster
House constitution.

Bat at a news conference yes-
terday Mr Mugabe said that he-

still believed that the general
principles already set out by
his Government were adequate
but added: M If .there is a need
for. an investment code, we wild
consider having one."

He did not go into detail but
promised that "something will
be said ” in the ' three-year
transitional development plan

Mr Mugabe told newsmen that
overall his trip had yielded
"tremendous benefits,” though
he accepted that further
economic assistance to Zim-
babwe would be constrained by
the difficulties facing the indus-
trialised world.

The softer tone on an invest-
ment code Is thought likely to
reflect pressure from Western
Europe for a more positive
stance by the Harare Govern-
ment . towards foreign
investment

Shortly after Mr Mugabe’s
news conference, Zimbank, the
country’s second largest bank-
ing group, which is State-owned,
appealed for action to attract
foreign investment into the
private sector and boost exports.

Zimbank warned in its May
economic review that the
country’s balance of payments
deficit more than doubled last

year from £120m to £300 m. It
predicts an improvement in
1982 due to higher tobacco,
meat and maize earnings and
enhanced aid inflows, but warns
that the balance of payments
will come under renewed strain
from 19S3 onwards.

first quarter
imports rise

Debt servicing costs will rise,
imports, including food imports,
will rise and export growth
remain “ doggish.” It calls for
action to attract new foreign
investment . and boost exports
so that the private Pectoris able
to meet the ambitious develop-
ment plan investment.target set
for it by the Government

BAHRAIN — Saudsa Arabia
imported goods worth 33.5bn
Riyals (£5.44bn) in the first
quarter of this year, 16.3 per
cent more than in the equiva-
lent period last year, the official
Saudi Press Agency said. ;

The first-quarter imports last
year totalled 28bn riyals, it said.

The agency, quoting Finance
Ministry figures, said imports
of cement, steel and flour ^ were
markedly down because of
higher domestic output of those
products, but purcbases of cars, '
barley, meat, fruit and veget-
ables increased.

Reuter.

..Reports from NTtiajnep£
suggest that the only opposition -
to- Uff Habre came from Presi-.

. dent GoukouniV i orces, whlle;
the other armed groups allied ••
to the government— the south-
ern-based supporters of Colonel.
Kamougue, and the irregular
troops backing M Ahmed Acyl
— held' back from the conflict
There has been no immedi-
ate reaction . from Colonel
Muammar Gadaffi of Libya, who
had supported President
Goukouni with his own troops
until he withdrew to make way
for the OAU at the end of 19SL
. He - is thought- unlikely to
intervene, because he is due to
become the next chairman of
the OAU, and could not afford
to alienate other OAU members '
The OAU. has clearly been :
run n i n g out of patience with '
President Goukouni, and had
given him a deadline of June 10
by which to agree to a ceasefire
and negotiations, or fhce the
withdrawal of the peacekeeping
force. •

BY CHARLES SMITH IN TOKYO

JAPAN’S direct foreign invest-
ment rose by nearly 90 per cent
to $3.9bn (£4.97bn) in the 1981
fiscal year, the Finance Ministry
has announced.

A large part of the rise was
due to the fact that Japanese
companies increased their loans
to their own overseas subsi-
diaries to take advantage of
lower interest rates in Japan.
Much of the remainder reflected

Japan's efforts to establish pro-
duction bases within Western
markets to deflect criticuans of
Japanese exports-

The overall total of $8JH>n
includes $5-57bn-worth of “loan
acquisitions ” by Japanese com-
panies— a rise of lo5 per cent
on the 19S0 figures— and $3-2bn-
worth of share acquisitions (up
by 40 per cent).

Fall in oil income jeopardises Indonesia’s growth

INDONESIA is Asia's only the year are causing consider-
member of the Organisation of able alarm in Indonesian

BY RICHARD COWPER IN JAKARTA

U.S. $150000,000

Midland International Financial Services BV.

Guaranteed Floating Rate Notes 1992
Convertible until June 1985
into 9 2 % G uararrteed Bonds 1992

Petroleum Exporting Countries government circles
(Opec) and its most populous country’s 1 mid-term
nation but, despite its wealth of prospects,
natural resources, it remains one oil plays a vital role in Indo-
of the poorer nations in the nesia’s economy, accounting for
developing world. around _ 70 per cent of the

The country is already suffer- country's gross foreign exchange
tog from weak demand and poor earnings and a similar propor-
p rices fbr its commodity exports: tion of government revenues,
to the first three months of this Weak demand forced the
year these were down, around Government to reduce output

over the
economic

35 per cent compared with the by around 8 per cent to the
same period in 198L Now, the first three months of this year.

world recession has affected, from an average of 1.6m b/d

Guaranteed on a subordinated basbaeto payment of princip a l,
premium (if anyland tntarestby

Midland Bank pic

Indonesia’s top export: oiL per day in 1981 to 1.47m b/d.

Weak de m a n d among its main Starling from April 1, Opec
overseas customers, coupled imposed a production celling
with OpeCs production ceiling; of L3m b/d and since then out-
has pushed Indonesia’s produc- put has been running at
tion and exports down by L28m b/d, down 21 per i
around 20' per cent in the last last year’s daily average,
few months. Fears that this Exports have fallen
could continue for the rest of snail er amount, mainly 1

200,000 b/d down on last year.

If the current level continues
for the rest of the financial year
(and it seems certain to do so
for at least the first six mionlhs)
foreign exchange earnings from
crude exports would be
IfcinfttlCCM us$2.6bn <£1.4bn) less than
WniHJNEolH - Jast year’s total of $13^bn. Dr

Subroto, Indonesia’s Minister
- for Mines and Energy,- recently
This is the sixth artide in a series calculated that the Opec produc-
examining the effect of pressure on tion celling would reduce pro-
oil prices in selected producing jected government revenues by
countries. • 3680m a quarter, or around

$2.7bn for the year.

the Government Increased its -ij? 1 ^! e s ^ J0r ^ to™ 1 * however,
inmarts at low snnr nripps thus there is no great cause far

IS

k OPEC
, IN

• CRISIS

JNDONESI

A

tnlPion barrets i

• MBONESU UKUIHrOFNBQI

CRUDE OIL

1*4 * —

PRODUCTION \_

1-2 —

put has been running at around

L26m b/d, down 21 per cent on Nevertheless, Indonesia s ml

imparts at low spot prices thus
allowing it to export more at

the official eovernment »ri«* ment during the ml boom years

: / X ,:i;"

EXP 0 HTS V >— -v

, M'CXMDBjSKrcbat ^

••••

Exports have fallen by a
smaller amount, mainly because

exports, now running at around

of 1979-80 has helped push
Indonesian reserves to around
SI 0.5 bn now — the equivalent of'

OCA nnA t / J 7, . - . uvrv UJC UUUJVOtiTU!

850,009 b/d, are at their lowest almost six months’ imports.

level for nine years, and at least

Forfre six months fram 7th JuneJ982 to 7th December, 1982
the Notes will carry an interest rate of 15^% per annum.

On 7th December, 1982 interest of U5. $38^34 will be dueper
UB. $5,000 Note fbr Coupon No. 5.

The Conversion Interest Amount applicable to Notes which
ere presented for conversion on or bbfbrelst December 1982
will be U.S. $31.67 for each UJ5. $5,000 Note and this will be
payable on 31stOetwnbei;1982.-

Nominal aid likely to stay level
after World Bank meeting

BY RICHARD COWPER

AgentBanlc Morgan GuarantyTnnt Company London

WESTERN

donors

According to the Bank, two achieving target economic

expected to- express their years of economic growth have growth of 7 pea: cent

b ROGERS AVIATION
for

BUSMBSS ARCRAFT

'IHQRE THEN YOUR DAT'

dismay at two controversial P 83- capita from

Indonesian go ve r nment decress ^-S-$370 in 1979 to U£L$521 in

^1 r™ 1QS1 '

In addition, the Government
is taking a number of measures'
which it says will enable it to
increase development spending
in Hoe with the budget
presented to Parliament, in
January this year. Improving
tax colection, tapping surpluses
camatiy lying unused in the
bank accounts of state enter-
prises, and boosting non-oil
exports as well as increasing
commercrai borrowing are ‘Just
some of the measure? which -the
Government says will allow It
to increase development

'AerontiUg to preliminary figures, average daily production
-an April was 1.24m b/d, while , average daily exports in A | »q

were 0JJ6m b/d ■

The delegates, from 12 jndus- expenditure in real terms;

SALES ^

maintenance

NKJOiRCATTONS

TELZBUXPm 023462441
TELEC82S772BOJET

when they meet in The Hague
•today under the auspices of the
World Bank to make their
annual aad pledge to Indonesia,

But the meeting will be
something of a milestone for
the Indonesia Government, For
.the first time, the World Bank,
in its annual report on the
Indonesian economy, places
Indonesia firmly in the ranks
of its middle-income category.

198L

But here the self-con&etula-
tfen will stop. Oil exports are
likely to decline by at least 15
per cent in 1982-88 and non-ail

totalised nations and five inter- Barring a disastrous rice crop.

national agencies, are therefore there seems no reason why
likely to accept toe recommen- Indonesia's economy should not
da tion of the World Bank that grow at more than 5 per cent .
the nominal level of overseas to 1982*83.

per cent to 1982-88 and non-oil development assistance be main- If, however, the West does not
exports are' virtually static. The tatoed at last year's level of begin to pull out of recession
Indonesian economy is- facing around US$L9bn. towards the end of this . year.

W CU.tr VUIUOUJ QL aUL. AiiC J '

Indonesi an economy is facing around US$L9bn.

hard times. . They will, however, be keen and the market for Indonesia’s.

Balance of payment deficits to point out, 'at least to private oil and commodity exports
are likely to be much larger meetings, that Indonesia's con- shows no marked improvement,
than thought just six months troveraal new counter-purchase there seems little doubt that
ago and the Government may and shipping policies are both' the Indonesian Government will
have serious - problems to discriminatory and unworkable, have to slow down its economic -

serious - problems

development programme, with,
serious consequences for toe
country’s 155m population.

- . Government budgetary out-
lays play a cruelal role in the
country’s overall economic
growth and provide the mam
link ..between the external
export-oriented sector and toe
largely subsistence domestic
economy.

The world- recession. '.has -

already led to a sharp reversal
to Indonesia’s external finan-
cial positioiL In 1980-81 the
country was awash: to. a sea of
oil. money - following the last
Opec oil boom, and it recorded
a S2fibn surplus on the balance
'of-, payments current .account:
Last year, however, this was '
•replaced by' a $2fibn defirit —
an- overall deterioration, of
$Sbh, : - - . •

- In. ,1982-33 . the current
account balance _ is. almost cer-
tain to* decline ‘.even .further,
with some economists predict-
ing a 1 deficit, el up to $4.5bu.
TSongb toe. overall balance of
pa yme nts position looks less
worrying, the- .prospect of a
continuation ‘ of' this year’s
-.-expected 5L5bn deficit does,
have- serious implications for
the level of future government
spending,' evem If— as is likely
—Jakarta increases its level of
foreign commercial borrowing.
But, With 3m new mouths and
more toan 'Um 'hew jobs to find
every- year any sizeable cut in
government, spending could
have- a serious effect, not only
On \ r overall- economic -■ growth
rates, but also on' the already .
high level of poverty.

■ s?

Financial 35mes Tuesday June 8 1982

n

•--<
". V

l- *v*

t ;*.. .

K^i— ‘

“ \-

. s

/V<

THE FALKLANDS CRISIS

at-

Cuban military aid Reagan and
likely to be refused Pope *5?,

. „ , , / on conflict

m the short term

Jimmy Burns, in Buenos Aires; reports on improving prospects for political changes

Argentine armed forces jockey for position

BY JJMMY BURNS IN BUENOS AIRS

ARGENTINA. IS unlikely to
take up immediately what it
claims is an offer of military
assistance from Cuba, but has
sot piled out changing its mind
if the conflict with Britain
worsens.

Sr Carlos Rafael Rodriguez,
the Cuban Vice-President, said
in Madrid over the.' weekend
that hie country was prepared
to become " fully involved " in
the Kalklands crisis and would
offer Argentina any assistance
it wished. He was speaking oh
his way to a Comecon meeting
in Budapest

However, Buenos Aires ‘
government officials returning
from the meeting of the non-
aMgned movement in Havana
have stressed the diplomatic
rather than the mUatary aspect
of Argen&iw-Cuban relations.

Speculation that Argentina
might be considering Cuban
military assistance was fuelled
by the presence in "Havana last
week of General Hector
Igteslasj a . senior adviser to
President Leopold? Galtieri.'
But rapprochment with. Havana,
as aired publicly, by Sr Naoanor
Coste Mendez, Argentina’s
Foreign. Minister, is aimed
principally at ■ broadening the
support of non-aligned countries

for the Argentine cause at the
United Nations, officials indicate.

The public emphasis of

Cuban solidarity also appears
to be part of Argentina’s
general diplomatic manoeuvring
aimed at patting pressure on
Washington to adopt a mare
neutral line. It is aimed
particularly at strengthening the
arguments of the “Latin

Americanists” within the

Reagan Administration who fear
an escalation of the Falklands
conflict the eradication of the
U.S. presence in Latin America,
and . growing Soviet bloc

influence:

. . Argentine Foreign Ministry
officials yesterday were privately
expressing their delight over
the debacle about the UjS. veto
at. the UN last Friday, and the
number of votes backing the
joint . Spamsh-Panamaman reso-
lution. which calls for an imme-
diate ceasefire.

Caution over the acceptance
of direct assistance from Cuba,
and from the Soviet Union for
that matter, appears to reflect
pressure from more conservative
elemnts within the armed forces,
for whom the thought of open
military co-operation between
Argentina and either Cuba or
Moscow remains anathema.

Cunard ‘staggered’ over
return of troopship QE2

FINANCIAL TIMES REPORTER

THE Cunard Steam-ship Com-
pany voiced surprise and
scarcely restrained delight yes-
terday at the news” that their
flagship, 67,000 ' tonnes QE2, is
returning to Britain. •

The liner, whose main . job
was to disembark 3,000 troops
of the 5th Infantry Brigade on
the Falklands. has not seen any
fighting. The landings, were
thought to have been un-
opposed. -

Mr Bernard Crisp, Canard’s
UK Director, said: "We were
very proud to be called upon
to help, but we are relieved and
grateful die’s now. coming
home.” ‘ r
When be had been told the
ship woifld be back in South-
ampton on Friday, the news had
staggered him, lie said. - -
The' four .weeks that thelirier -
has been out of normal action

had cost ■ its owners an.
“incredible” -amount of
money.' But he did not think
customers had been perman-
ently lost to other lines.

“Our prime aim now is to
get the ship back into impec-
cable condition,” be said. The
reconversion is almost certain
to be done at Canard’s tradi-
tional UK ship repair home,
Vosper Shiprepairers of
Southampton, which carried
out the original conversion of
the liner into a troopship.

...The work is expected to take.
. at least-a month.

Cunard is understood to have
'taken soffie 3.000 photographs
of the ship before her departure
for the Falklands in order to
back up possible -claim to the
Government for consequential
loss.

•»- By Rupert Comwrif )n Rome

PRESIDENT REAGAN yester-
day .examined with the Pope
the prospects for an end to the
Falklands ■ war, hours before

• setting off on a two-day visit to
Britain, at which the south
Atlantic crisis will be the
dominating theme.

. No details emerged from their
-50 minutes of private discus*
slobs at the Vatican,

However the meetings could
be an important element in the
efforts to find a solution to the
Falklands dispute. While
President Reagan is now in
London, John Paul n on Thurs-
day leaves' for his hastily
arranged mission to Buenos
Aires, when he is likely to meet
President Leopoldo Galtieri. .

Yesterday's official state-
ments in public gave tittle clue
to the substance of the discus-
sions.' President Reagan spoke
generally of the mutual concern
of Washington and the Vatican
. over events in the • south
Atlantic.

The Pope again emphasised
his overriding preoccupation
with the peace of the world,
threatened by acute tensions in
the south Atlantic, by the war
between Iran and Iraq, and now
Israel’s invasion of Lebanon.

Workers put
in overtime

Overtime of ten-hour shifts is
being worked by 100 employees
of James Smith and Co. at their
works in Drewry Lane, Derby,
to. produce waterproof uniforms
needed urgently by the British
task force fighting in freezing
conditions.

More than 2,000 items have
already been despatched by the
uniform manufacturers to the
South Atlantic.

• Vice Admiral Sir Lindsey
Bryson, the Controller of the
navy, has thanked Rolls Boyce
workers at Ansey, . near
Coventry, for their service to
the Royal Navy in the crisis.
He praised their increasing
efforts for Olympus and Tyne
engine production, and their
very prompt response to the
many demands for. spares.

. ■ There was also a tribute from
the Royal Navy and the RAF
headquarters in West, Germany
who said the Pegasus-powered
Harriers bad out-fought and out-
manoeuvred the best of Argen-
tina’s .supersonic and subsonic
fighters.

AS ARGENT'] N A braces itself
.for a Woody battle at Port
Stanley and for - a possible
escalated conflict leading
eventually to a bitterly negoti-
ated settlement with Britain,
-the military junta is under
increasing pressure from poli-
ticians to .cede at least part of
its monopoly of political power.
What will happen “after the
war" has virtu allv replaced “the
wstr” as the focus of political
ddbate.

The pressures were already
‘bonding up before the military
invasion of the Falklands on
' April 2.. They were temporarily
submerged -beneath the nation-
alist euphoria that followed
immediately afterwards.

But more recently the junta
has been forced by events to
modify many of Jts policies, par-
ticularly in foreign policy and
economic fields, bringing it into
tine with, what has been
demanded .in the past by the
.bulk ‘of the apposition parties.
What a few weeks ago was
anathema to the military
regime has now become accept-
able, publicly at least, as was
epitomised in tfhe photograph
of Sr Nicanor Costa Mendez,
the Foreign Minister, warmly
hugging Fidel Castro.

Officially, Argentina has
achieved a new national unity
as .a result of its struggle against
Britain. But beneath the sur-
face, the Falklands crisis has
opened up a Pandora’s bos of
vested interests, and. there are
wide differences about what the
scope and depth of further
change should be.

. Sr Deolindo Bittel, the presi-
dent of the ultra-nationalist
Perooist Party, has drawn up
an ambitious proposal for
greater civilian participation in
government. .

The plan involves the elec-
tion of a civilian Prime Minister
by. an. ad hoc grouping of
generals' 1 and politicians. The
junta would be allowed to con-
tinue as a collegiate executive
branch, but the new Prime
Minister would be entrusted
with fprming a more repre-
sentative Cabinet to lead Argen-
tina through a transition phase
and full elections in two to
three, years’ time. Implicit in
the plan is the replacement of
Gen Leopoldo Galtieri by a
more clearly defined populist
figure.

This acceptance by the
Peronist leadership of what
amounts to a new civiKau-
military alliance is traditionally
rooted in the party philosophy
— the party's founder, Juan

v.*t •''»«£

Troops of the 5th Infantry -Brigade going ashore near. San -Carlos. Buy transferred to landing

craft from the liner QE2

Peron, was first and foremost
a general who courted civilian
support.

But ihe plan presupposes the'
existence of a Peron figure at
a time when the current batch
of aspiring populist military
figures lack either sufficient
military support or the assured
backing of influential civilian
sectors.

Flirtation

The more middle-of-the-road
Radicals, the other main politi-
cal grouping in Argentina, have
never shared the same flirtation
with the military. Sectors
within the party are pressing
for a less ambiguous political
liberalisation, involving the
replacement of a junta by a
civilian president Sr Arturo
I1H a. Radical president of
Argentina between 1963-66, is
being brandished as a possible
transition leader.

Draft political' plans have
been discussed at several
private meetings between mili-
tary officers and politicians in
recent weks. At the same time,
the army, which has for years
jealously guarded its position
within the armed forces as the
main forger of political changes,
has formed a think tank of

general entrusted with formulat-
ing an amended political pro-
■ gramme for the post war period.

Reports of major splits within;
the junta are exaggerated^ Had'
its members really been at each'
other’s - throats from the early:
days of the Falklands crisis, it
is doubtful whether the. armed'
forces could have sustained a
relatively successful defence of
the islands, or that domestic
politics could hare survived
without a palace coup or some-
thing similar.

But beneath the solid military
exterior, the collegiate rule of
the junta does appear to be the
strain of a war which gets more
messy .by the day.

The course of the - crisis has
upset a delicate power balance
within the military structure.
This has traditionally rested on
an all-powerful army, from
which successive presidents
have been drawn, a less power-
ful but • nevertheless intellec-
tually influential navy, and a
politically lesjr significant air
force.

This balance had remained,
unaltered for most of this
century— until April 2, wbenthe
armed forces became involved
in their first international war.
Previously, the role of the- mili-
tary was defined within- -the

parameters of domestic politics.

As the Falklands war has
developed, the branches of the
armed- forces have been jockey-
ing for new positions.

; -The Argentine Air Force,
thanks to the exploits of its
pilots,, has /found a. prominent
‘place in public' opinion and,
probably for the first time hi
histoid -has begun to make its
voice heard politically.

Participation

The most important political
statement to have come out from
within the junta recently has
been issued by Brig-Gen Basil io
Lami Do 20 , the air farce chief.
He said : (that once the war was
over the military would have
to -consider seriously a change
of economic policy as well as a
greater participation in decision-
making by Lillians.

Indicative of the air force’s
newly-won prestige is the
monument raised to it- two
weeks agor-the first dedicated
to any branch of the armed
forces since the outbreak of the
war. The picturesque and
popular Plaza- Britannia, site of
the imitation Big Ben clock
tower -in downtown Buenos
Aires, has been renamed Plaza

de la Fnerza Aerea (Air Force
Square).

The navy, however, is un-
likely to fpve up its second
place in the military ranking
without putting up some resist-
ance. Navy officers will argue
that it was their infantry which
first set foot on the FaUdsods,
their conscripts who were
heroically sacrificed in the
General Belgrano and theffr air-
craft which, with . Esocet
missiles, sunk HMS Sheffield.

More equivocal has been the
role of the army. The changes
of policy provoked by the Falk-
lands crisis have stirred old
rivalries and confused priori-
ties.

The army hierarchy which
pulled off the 1976 coup was
essentially made up of “liberal”
officers-— pro-Western in foreign
policy and military alliances,
virulently anti-Marxist in Its
domestic politics and defenders
of the free market on the eco-
nomic front.

Events of the past few weeks
have strengthened the hands of
those “ nationalist ” officers who
favour the opposite. Many see
the attraction of Sr Bitters
civilian-military alliance, but a
number are doggedly com-
mitted to the “process"
initiated in 1976 and insist that
it is the military which should
keep firmly In control, at least
until March 1984, the date when
President Galtieri's current
term expires.

Gen Galtieri himself remains
a political enigma. It is hard
to believe that, having so
warmly courted U.S. military
officers just before he assumed
the Presidency last December,
he is now the junta member
most openly entertaining the
idea of Soviet military assis-
tance.

Much political uncertainty
also surrounds the attitudes of
mrMtary officers most directly
involved in the Falklands fight-
ing. Those who have been
experiencing harsh conditions
in the front lines and who have
been projected by the govern-
ment propaganda machine to
heroic heights may well be
tempted by the prospect of
political power — or at the very
least of having their demands
listened to — once they return to '
the mainland.

Gen Mario Benjamin Menen-
dez, the military governor of
Stanley, is already seen by some •
as the new Gen San Martin—
the hero of Argentina’s 19th :
century war of independence.

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THE FRENCH ART OF FINE IIVING
COMES TO BAGHDAD

Now, in addition to Abu Dhabi, Cairo,
Damascus, Dhahran,. Jeddah, Khartoum,
Kuwait, Palmyra, Latakia andShaq ah, you
can find the French art of fee living in
Baghdad, the city of the “Arabian Nights”.

The address of this unique “savoir-
vivre”: Hotel Meridien, Street 47, MahaJlat
102, Baghdad, Iraq.

Reservation and information: see
your travel agent, your Air France ticket
office or in Paris call 75715.70, in London
493.06.09.

sr

vmm

LES HOTELS D'AIR FRANCE

. THE FRENCH STYLE OF PINE LIVING IN THE W0RLI1

^ BANQUE DU LI BAN ET ^
D’OUTRE-MER sal (BLOM)

Beirut - Lebanon

announces the opening of a

REPRESENTATIVE OFFICE IN LONDON

Temporary address: 4-6 Copthall Avenue
London EC2R 7DA — Telephone: 01-62$ 5830

BLOM has 22 branches operating in

Lebanon - Saudi Arabia - United Arab Emirates - Sultanate of Oman (1982)

Sister Banks

7 Banquede l’Orient Arabe et d’Outre-Mer (BANORABE)

10, Rue de la Paix — 75002 Paris.

Banque Unie ponr l’Orient Arabe (BANORIENT)

2, Rue du Marche CH — 1204 Geneva

Banques Uuies pour I’Afnque '(BANAFRIQUE)

25-27 Avenue General de Gaulle, Abidjan, Cote dTvoire

Campaign
for ERA
enters
final phase

By Our Washington
Correspondent

THE CAMPAIGN for a con-
stitutional amendment to
guarantee equal rights in all
fields of law for women
entered its final, desperate
phase over the weekend as
the June 30 deadline for
ratification or an Equal
Rights Amendment drew
near.

Supporters of ERA need
three more states to
ratify the amendment by that
date and Sunday saw massive
demonstrations in Springfield,

' the state capital of Illinois,
the only Industrial state not
to have voted for ERA so far.

In addition ro the demon-
Strattons, seven women have
gone on hunger strike 1a
Illinois, vowing not to eat.
until the state legislature
ratifies the amendment
This tactic has alienated
some- legislators who luff pre-
viously supported the amend-
ment but fear that a pre-
cedent might be set for other,
special interest groups.

Cither states in which ‘ ERA
supporters are mounting 1 last
ditch campaigns for ratifies- 1
tlon are ' Florida, North
Carolina and Georgia, where
ex-presidents Jimmy Carter,
Gerald Ford, Richard Nixon
and their wives had* aU
campaigned for the
amendment.

UNDP suffers
heavy loss

GENEVA — The Tiring
dollar cost the United
Nations Development Pro-
gramme S75m last year and
the loss could be even greater
this year, Mr Bradford Morse,
UNDP administrator Brad-
ford Morse said yesterday.

BY ANATOLF KAUETSKY JN WASHINGTON

THE US. election seasoti^wings
Into action today as the. polls
open In California, the .largest
state in the union; .for the
•primary election. Voters ‘ will
choose the; -Democrats. and
Republican candidates who win
stand for senator, governor and
a host of 1 lesser 1 offices in the
final election in November.

The candidates for senator
present a bewildering variety of -
political options, and; person- .
alities with exceptional " name
recognition’ factors," -Including
Governor Jerzy Brown, writer.
.Gore Vidal, Mr Bajrty Gold-
water, Jr,- arid even President
Rtegan’s daughter' Maureen.

Opinion polls, indicate, how-
ever, that voters will select pro-
fesriqnal politicians' from both
parties and in- the .process
deliver something <»f * rebuff

to the conservative movement In
this key ' state.

Mr GoWwater, son . of the
right-wing senator from Arizona
who contested the presidency
in 1964 against Lyndon Johnson,
bad been considered an easy
winner in the . Republican race
until a few .months ’ ago.

Since then he has faced -a'
strong challenge from another
extremely well financed . candi-
date even further to the right,
Mr Robert Dorn an, and his deci-
sive lead began .to disintegrate
amid charges that he lacked In-
telligence and independence
from bis father’s thinking: He
■was also accused of b«ng soft
on moral issues such as homo-
sexuality and abortion.

But as the election drew
nearer,.. Mr- Doxnan; too.

appears to have-lost ground and :
the clear front rmmeVs now are
two moderate; .. Republicans.
Mayor pete Wilson of" San.
Diego and representative"
Paul McClos.key: ; - .

•" A victory for either of .them
In the Senate primary will be a
dear setback for. the "moral
majority” and; something, of a
setback for -resurgent conserv-
atism in the stqte that launched
Ronald Reagan in polities. - -•

In the Democrat's senate ace,
Governor .'Brown is the; clear
leader, ; Despite his reputation,
.for "Somewhat- .bizarre '-'political
ideas— he once proposed -that
California should have its own
independent space programme,
for- example— and his contra ver-
,'stal personal life,; including a
. muefrpublieised relationship
. with. .stager. Linda Ronstadt, Mr,

Brown sees a senate iseatvhs**
launching pa‘4 for the U^p^-
sidency. ri ... ; - ‘d

If he. succeeds in wittering t£e
Democratic ' .nominatitra,;* fie
stands a.'good.-chance hf-gettiag
. to the ..Senate, and could 7 become
a - serious, presidential contend!?
in 1988. or .later, after establish-
..fog .himself as a national pai
tidan.: .'•*•' 1. ‘ ^

In addition to', voting for poe-
tical: candidates, the electors
will be decrtfingloday orr a ririza-
ber of controversial referendum
issues, including the oimstrnfc.
tion of a mtdti-biHimi: : ifollar
"peripheral " : canal" ‘ - to scarry
water supplies from ' . northern
GalifoAfa to Los Angela and
San Diego and' A' proposal by
Mr Howard Jarvis, foeahS-t&x
campaigner, - to limirfe state’s •
ability to .. raise taxes huh^
.Tapidly than'' inflation. ■ : y ;

U.S. steel cumpaiiifes
controls over immigrants talks on labour contract

THE COSTA RICAN Govern-
ment, has announced k will
strengthen controls over the
estimated 220,000 foreigners
living inside the country, AP
reports from San Jose. . ‘

Public Security Minister -
Angel Edmundo Solano has 'said
an estimated 60,000 aliens who
have entered - the* Central
American country illegally will
be investigated by Immigration
officials.

They will be required to
apply for the necessary docu-
ments and if any refuse they
will be deported.

Anyone classified as “undesir- -
able " will also be deported,
Edmundo Solano said. But be
did not say what criteria would
be used to make - that
determination.

He indicated that the 5,000 -
Cubans who entered Costa
Rica with the hope of later gain-
ing entry to some other "
country, in most cases the UJS.,

would .; receive., special
consideration.

0 The- army* in El Salvador
pledged to defend the U.S.-
backed ."land ,to the tiller”
agrarian reform programme in.
a land-title ceremony at the
.weekend. However, evictions of
the programme’s tenant - farmer .
beneficiaries continued, AP
writes from Santa Tecla.

After a. speech by army. Chief
of Staff Colonel Rafael Flores I
Lima, 500 peasants wer given
’provisional titles to the small
plots of- land they had daimed
from their former landlords
under the programme.

Bnt. the Popular Democratic
Union, a coalition of peasant
organisations, said many land-
lords, emboldened by the right-
wing election victory, . have
started to evict peasants from
land claimed under the pro-
gramme. Nearly 10,000 have
been evicted, according to the
union.

BY RICHARD LAMBERT' IN NEW YORK

D-S.. STEEL producers In an
unprecedented move, have asked

the United Steeworkers’ Union

for early talks on the basic
labour contract which -covers
some 250,000 workers. -

The request has prompted
speculation that the steel com-
panies will seek to renegotiate
terms of the present three-year
contract, which expires in
August 1983.

In. response, the union has
called a meeting on June 18 of
its executive board and some
600 local union presidents who
make up the basic - steel in-
dustry bargaining conference.

Under .normal conditions, pre-
liminary talks on a new. contract .
would have started around the
end of the year, with hard bar-
gaining getting under way next
spring.- - 1

The industry’s eight company
bargain group, however.

Wall St markets jittery
after Drysdale default

evidently believes that fife-car-
rent crisis in the U45. : steel' in-
dustry calls, for -'the^imrire
. urgent measures.- •

The. steel . companies rec&ntiy
.made a formal presenta&en to
union leaders; giving derailed
comparisons between“-’l&boUr
costs in the tLS. ihxftaft^arid
its international compfittStoCxV
of the U.S. steel .ri 3- . i

Employment of hottt^’^paid
-workers in' the. industiy; ,has
fallen to its lowest points at
least 50 years. Total ctunpex&t
tion for an hourly paid worker,
including pensions ‘andrittfhejr
benefits, now amounts tb a little
under ?22 an hour."'; / --i

As Twell as the wegSsen
directly -covered by the^Sask
contract; t i-any. renegotiation
-would also affect another OOJOOO.
or so workers whose '-etagloy-
ment terms" follow .tJttEimain
industry settlement. • . 'J'-'j* ' :

-83

BT DAVID LASCB Ig IN NEW YORK

WHEN Marine Midland Bank,
the large New York bank owned
by the Hongkong and Shanghai
Bank, announced last Friday
that It bad been forced tem-
porarily to suspend dealings
with Comark, a small securities
trading outfit in California, Wall
Street reacted with predictable
shock.

■ With memories of the Drys-
dale affair still fresh, no one
wants to hear of any more
dealers in difficulty. As it
turned out, the Comark prob-
lem was quite different from
Drysdale • (it centred on the
validity of collateral Comark put
up for a loan) and it was all
sorted out in 24 hours. But it
showed how jittery the markets
have become.

The post-mortem Into last •
month's Drysdale default is still
under way, .but it has already
prompted Wall Street to take a
hard look at its trading prac-
tices — and trading partners. At
a different level, people also
view the affair as another sign
of the damage that high interest
rates are doing to the U.S.
financial fabric.

"None of this would harve
happened five years ago," said
a seasoned trader. “Some
people find these interest rates
irresistible.”

Although. Drysdale’s finances
have still not been completely
untangled Csome of its chaotic
records were apparently kept in
shoe boxes), it now seems dear
that it came to grief trying to
exploit a couple of unusual
quirks in Wall Street trading
practices. These enabled it to
divert other people’s money —
quite legitimately — into its
own account and then speculate
with it

Drysdale was borrowing bonds
from financial institutions for a
small fee and then selling them
" short " in the market hoping •
to buy them back later at a
profit.

But, regardless of bow
successful the short sales were.
Drysdale could guarantee to
generate some cash for Itself by
picking up the accrued interest
on the borrowed bonds that it
sold. It did not have to put up
collateral against this interest
(which - belonged to the
securities* owners) and did not
have to account for it until the
Treasury coupon date, which
could be several weeks away. So 1
it had effectively generated 1
" free ” working capital. . . (

Unfortunately, Drysdale .
gambled its gains away, possibly
as much as $300 m (£lB6m) J
. worth, and was unable to pay the
money, .back when the- time 5
came. The lenders stood to \
loose because Drysdale bad hot 1
put up collateral against the j
interest. . ; i

As it happened, the three
banks. Chase Manhattan, Mann- 9
facturers Hanover and . US. 1
Trust who had helped Drysdale 1
assemble flic borrowed securi- *
ties, agreed to foot the bill, but t
they did it grudgingly and may <
still sue to recover the money. 1
Chase which paid the biggest i
share, expects to lose as much
as $135m after tax. t

It may seem astonishing that 1
iri a tough market like Wall '
Street, such a loophole should t
exist But modern-day trading i
conventions evolved In the days c
1 when interest rates were much

mm

MBAYgWWC

Ci jDrysdale takes /

Y a' $250m bath \

lower and. accrued interest was
so small that nobody bothered
;a!bout.it when lending securities
out Today, however, treasury
bonds carry coupons of 14 per
cent, which means that a six-
month coupon on a $1,000 bond
is worth, $70.

Drysdale had “shorted" 4an
such bonds. According- to Mr
Anthony Solomon, the president
of the New York Federal

The post-mortem into
last month’s Drysdale
-default is still '
underway, but it has
already prompted Wall
Street to take a look at
its. trading practices
— and trading partners.
It is also viewed as
another sign of the
damage high interest
rates are doing to the
U%S. financial fabric.

Reserve testifying to congress:
"Its activities were conducted
on a scale out of Ml proportion
to its capital ”

Within days of the affair. Wall
Street government securities
traders had got together to see
what should be done. They pro-,
posed that, in future, borrowers
of securities be required to put
up collateral not just for the
value of .tile bond but for the
accrued interest as welL Some
traders object to this idea, how-
ever, because it would add
enormously to their paperwork.

Another issue which has to
be resolved is the exact role
that the : banks play in securities
lending. Part of . the crisis
stemmed from Chase’s initial
refusal to accept liability for
Drysdale’s debts because, it. was
acting as agent, not -principal,.
In the transaction,-

WaU Street bond dealers Jire
adamant, however, that while
there may be no hard and fast
rule, there is a convention' that
banks act as principals in these
so-called "■ blind broking ”
deals when, as in the Drysdale
case, Chase did not say to whom
it was lending the securities.

This issue, which proved so
costly to . Chase, may yet be
fought out in the courts. Mean-
while,- it has cast a pall of mis-
trust over Wall Street’s
normally dubby bond-dealing
community. t

“ There are only 36 big boys

in this business and we all
know each other well," said one
of them. " But you can bet we
are all going through our credit
Ales right now." Several, invest-
ment companies suspended their
.dealings with Wall Street for
as much as two weeks while
they ran a credit cheek- on their ,
clients. Some brokerage firms i
felt obliged to send out eir - 1
culars saying what their capital
was and who they were audited
by.

The Federal Reserve has
been watching dosely because
of ihe importance of the huge
$750bn Treasury' securities mar-
ket, where the Treasury
finances its burgeoning deficit
and the Fed itself implements
monetary policy.

Fed officials support the idea
of changing collateral rules for
borrowed bonds, but they are
-reluctant to tighten regulations
because that might reduce the
markers liquidity and drive up
-Interest rates. They insist that
Drysdale was a one-off case and
no reason for a massive
crack-down.

The Fed is also concerned
about blind brokering, which
it believed sharpened the
■ crisis. Without taking sides in
the Chase .dispute, officials say
that participants :□ the market
must know for certain who ir
is they are dealing with.

Mr Solomon raised questions
about the quality of controls at
Chase in his testimony, and
Wall Street is still buzzing with
speculation over how Chree
could have allowed itself to
become so exposed to Drysdale.
One theoty is that the securities
job— a comparatively tedious'
one- Involving a lot of paper-
work— was assigned to tod-’
junior a person who had no!
idea what was going on.

Chase has still to tell the full,
story; and it may withhold if
pending any legal action if
decides to take.

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' ffinajacial Times 'Tuesday June S 1982

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Financial Times Tuesday . June S' 1982

WORLD TRADE NEWS

China approves
foreign backed
joint ventures

BY TONY WALKER IN PEKING

MORE THAN 40 joint ventures
utilising foreign investment
totalling some $189m (£103m)
have been approved by the
Chinese Government, an
investment symposium was told
yesterday.

Mr Wei Yuming. 'Ice-
Minister of Foreign Economic
Relations and Trade, addressing
the opening session of an
investment promotion meeting
in Canton sponsored by the
UN Industrial Development
Organisation and the Chinese
Government, said considerable
progress bad been made in
attracting foreign investment

The investment promotion
meeting is aimed at encourag-
ing foreign participation in a
range of ventures most of
which involve technical up-
grading of existing enterprises.

Mr Wei listed areas in which
China would like to see a
greater degree of foreign busi-
ness participation as energy,
textile and light industries,
fond processing, pharmaceuti-
cals. electronics, building
materials, telecommunications,
animal raising and breeding
and tourism.

Madam Chen Ituhua, China’s
J.Iinister for Foreign Economic
Relations and Trade, assured
visiting businessmen that China
was committed to a long-term
open-door policy.

“We hold that with the
present high level of techno-
logy, no country in the world
possesses the resources and
funds needed for the develop-
ment of its economy . . . every
country must make trade-offs
for its needs.” she said.

Madam Chen described the
Unido meeting as a “useful
attempt” at promoting inter- -
national economic coopera-

tion. She sought to reassure
visiting businessmen that the
present anti-corruption cam-
paign would not be allowed to
interfere with China's open-
door policy.

Some foreign businessmen
are complaining that Chinese
officials have been ** scared off '*
by the anti-corruption campaign
and are proving reluctant to
get involved in business nego-
tiations because of fears that
the finger of suspicion might be
pointed at them.

Meanwhile. European trade
officials in Peking are prepar-
ing for a visit by If Etienne
Davignon, vice-president of the
European Commisison. M
Davignon is expected to raise
with Chinese officials European
concern about the Community’s
reduced share of the China mar-
ket in the past several years.

In 1978 the Community’s
share was 17 per cent, rising
to 18 per cent in 1979. Last
year it fell to 11 per cent Pro-
jections for this year show a
likely farther slippage in the
EEC's share of the China mar-
ket

EEC exports to China last
year totalled about £2bu.
Chinese exports to the Commu-
nity reached £2.3bn. according
to unofficial estimates

The official contrasted the
Community's performance with
that of Japan, which last year
took a 27 per cent share of
the China market and the U.S.,
which accounted for 18 per cent
in 1981, up 7 percentage points
from 1978.

The main reason for the de-
clining Community share of the
China business is that the
Chinese policy of readjustment
has reduced demand for Euro-
pean steel products and
machinery.

Japan to
ease car
import entry

By Paul Cheeseright in Tokyo

The Japanese Government will
shortly announce new mea-
sures designed to ease the
problems of foreign car Im-
porters. But they are unlikely
to benefit Ley land Japan, the
BL-Mitsui joint venture com-
pany which handles Jaguar,
MG . and Rover ales.

The measures, which wiD
simplify inspection and docu-
mentation procedures for com-
panies handling small
volumes, were expected on
June 1, importers said yester-
day.

They are part of the
Japanese Government’s plan
to liberalise imports, in the
face of pressure from Western
bending partners, and origi-
nate In the first package of
derisions to improve market
access which came out in
January.

But importers expect the
changes to lack substance
because of the small number
of car imports which, will
qualify for the 1 ’ new
procedures.

Cars imported into Japan
— and other markets — need
either designated type
approval on non-designated
type appnrvaL
Under the first, quality
checks to ensure that the car
meets the 'standards of the
importing country are earried
out in the plant of origin but,
under the second, each car is
individually Inspected on
arrival. The first system is
usually used when sales are
of high volume and the second
when sales are of low volume.

The new Japanese system is
expected to permit entry of
cars without the arrival in-
spection procedure and with
a reduced amount of docu-
mentation when model sales
are' up to just 100 a year. '
This is seen as Interpreting
the idea of low volume car
imports in the narrowest way.

Truck market ‘

BY NICK GARNETT, NORTHERN CORRESPONDENT

THE WORLD market for
trucks of six tonnes and above
would not pick up to the levels
of the mid-1970s before the end
of tiie decade, one of the indus-
try's leading component sup-
pliers said yesterday.

Mr Bob Gilliam, president of
the truck components division
of the Eaton Corporation,
which ss a supplier to most of
the world’s truck builders, said
the depressed situation in the.
large U.S. market was a par-
ticular long-term trouble spot

But truck building Is likely
to rise in the U-S- during the
second half of this year because
of shrinking stocks. This is also
likely to happen in tile UK.

Mr Gillison was speaking at
the formal opening of a new

Manchester manufacturing plant
for the transmission division of
Eaton Limited, the tJK holding
company of the U.S. corpora-
tion.

Eaton, whose output includes
gearboxes, axles and brakes, has
a worldwide transmission capa-
city of 300,000 units a year.
But it is currently utQking
only a third of its installed capa-
. city in its U.S. plants and about
70 per cent at its European
sites.

Nevertheless, Mr Gillison
said the company was bullish
towards the market partly
because new trucks were
na ming on stream and were
using Eaton components.

The company had originally
forecast a 3 per cent fall in

truck production this year com-
pared to last year. But that has
been revised to 10 per cent
‘ It believes the market in
Italy will probably be slacker
in the second half of this year
compared to the first half and
this would probably also be the
case for France. ,

Mr Gillison predicted that
West Germany’s domestic truck
market would begin climbing
out of recession next year or
the year after, but Oat the
country’s outstanding export
performance will soon begin to
diminish very significantly.

The Japanese were generally
beating German manufacturers
in export markets other than
those in which companies li ke
Mercedes Benz had manufac-

turing plants. “The Japanese
are not frightened of the
Germans but the Germans are
paranoid about the Japanese,”
he said.

One issue that component
manufacturers were watching,
said - Mr Gfllison, was whether
builders tike Mercedes Benz
would be able to' maintain their
policy of manufacturing as many
components as possible in house,
including fcnangmresinnJL

The number of truck makers
would undoubtedly shrink, he
said. It was still unclear though
who “the losers” would be, and
whether they would be taken
over by bigger manufacturers
ready to spread their research
base or would simply be driven
out of business.

Dual edge of Indonesia’s shipping decree

BY RICHARD COWPER <N JAKARTA

THE INDONESIAN Govern-
ment's recent derision that all
Imports and exports of Govern-
ment-owned goods are to be
carried by domestic shipping
lines could result in a sizeable
loss of earnings by foreign
shipping companies.. But it is
also likely to push up sharply
the cost of Indonesian imports -
and make Indonesia's exports
less competitive cm the world
market.

Economists are arguing that
the controversial new shipping
decree, if fully implemented,
may eventually deprive foreign
shippers of around 5600m a
year, at current prices, in lost
revenues. However, if Indonesia
were to try arid ship these goods
itself freight costs could be as
much as 30 per cent higher
because of Indonesia’s lack of
an integrated world-wide snap-
ping network and the relative
inefficiency and lack of experi-
ence of Indonesian shoppers.

Not surprisingly, however,
the 23 foreign shipping com-
panies based in Jakarta have
been less concerned with the

likely effect on a hard-pressed
Indonesian economy than they
have with the impact on their
profit margins.

The decree, which came
into effect on April 12. has
brought forth a storm of pro-
tests from both foreign shippers
and their goverments. It has
already prompted the U.S. Gov-
ernment — itself widely criti-
cised for protection of UjS. ship-
ping interests — to send a
pointed, aide memoir e to the In-
donesian Government calling for
tiie suspension of the decree
pending consultations.

In the absence of such discus-
sions the U.S. Government says
it would have no choice but to
take retaliatory measures, which,
could involve limiting the num-
ber of Indonesian vessels call-
ing at VS. ports. The EEC —
slower to react — is now con-
templating a similar protest

Indonesia regards such pro-
tests as unjustified. Officials
point to the Unctad guidelines
on “fair” cargo sharing, arguing
that Indonesia is well within
its rights to attempt to boost

the domestic share of foreign
trade to 40 per cent from what
they believe -is currently around
25 per cent. They are particu-
larly concerned at biting able
to increase their 10 per cent
share erf two-way trade with the
U.S. which is Indonesia’s second
largest -trading partner after
Japan. "

Few would quarrel with
Indonesia’s desire to improve
its market share. But almost
all agree that the scheme, as
envisaged, is unworkable,
legal hr questionable, and from
Indonesia’s point of view, un-
economic.

The decree stipulates that “all
export and import commodities
owned by the Government of
Indonesia will be carried by
vessels operated by Indonesian
companies.” If such ships are
not available Indonesian
national carriers may arrange
for foreign charfers.

The decree, as it stands,
allows no waivers for goods
financed by foreign aid or loans.
According to some foreign
governments this is unaccept-
able international practice.

Both the U.S. and France, for
example, stipulate that at least
a proportion of goods financed
by official export credits should
be carried by their respective
nati onal carriers.

Foreign, shipping executives
and Indonesian Department of
Communications officials say
f that around 35 to 40 per cart
of total ..twoway Indonesian.
- trade, estimated at around 112tn
tonnes in 1980, is Government-
owned, and is liable to be
affected by the decree. If tins
. figure is correct then around
42m tonnes is Govenanent-
owned, more than 60 per cent
of' which is currently carried
by foreign shippers. Indonesian
shipping fines would, therefore,
be required to carry an addi-
tional -21m tonnes or so each
year.

At least 30 or so Indonesian
shipping companies operating
international routes are cur-
rently making heavy losses, and
there is little doubt that if the
decree was fully implemented
freight rates on Indonesian
Government-owned goods would
have to be significantly higher.

Marconi

wins

export order

By Lynton Mdafn _

MARCONI AVIONICS, pet a t
fee GEC group, hag. -won a
further order, worth 623m
(£l2.6m) . from General
Dynamics for the Marconlhead-
up display system— for the 7-26
fighter aircraft. The computer-
controlled display system pro-
vides pilots with data ounoviga^

tion and information for aiming
weapons.

The contract was -amotwred
yesterday as Mr Patrick Jeakin,
fee Industry Secretary, handed
over the 1,000th head-up display
for ' fee F-16 aircraft at a
ceremony Is Rochester. Kent,
the headquarters of Marconi
Avionics. \ -

The-order brings toiSOOmtbe
total value of export contracts
for Marconi Avionics equipment
won in the past decarfp-

The avionics equipment
includes nearly 5,000 headi-up
display systems for 40 different
types of aircraft— more systems
tiwn the total combined produc-
tion. i H the rest of fee world.
Marconi said yesterday. .

The head-op display sys tem
far fee General DynatukaF-lfi
ai rcraft was ordered into pra-
duettos in 1976 and is now in
service with, seven oper ato r s ,
including fee United State* Air
Focce.

^ Marconi Avionics u Rqwos-
fele for the dengiv pradnetioa
and supply of the compietad
head-up display sy s tems for fee
F- 16 - ‘ • . . . .

Sub-ooutFactora for -. '[ the
system include OJdeift • of
Holland and Roagsbexg V gen-
fabrikk of Norway.

Marconi Avionics has
increased fee proportion of its
total sales going for export
from 41 per cent to 54 per cent
over the past year, Bat Britain
as a whole has a trade deficit
in electronics equipment This
deficit was £800m in. 1980
despite total UK output of elec-
tronics of £7.7bn, accoftifeg to
fee National Economics Devel-
opment CoundL

: ' .'V:' ; v .I..';;-:: ....

mm®

• i ■v’jjV/

Hanyang signs
$192m deal
with Saudis

By Ann Charters Hi Seoul

HANYANG CORPORATION
just signed a SI 92m contract
with the Saudi Royal Com-
mission of Jubail anq Yanbu
to build a complete residential
complex near Yanbu.

* The company will build 1,180
apartments and town houses,
together with shops and under-
ground utilities.

. With this project, Hanyang
Corporation has construction
contracts valued at $l-8bn in
Saudi Arabia alone.

The company’s total contracts
in the Middle East are $2.4bn
— with projects in Kuwait Iraq,
Libya and Nigeria, according -to
Mr Yu Kun Sang, manager of
Hanyang's overseas division.

• Agencies add -from Jeddah:
Dong Ah has won a contract
worth 8184.9m (633m riyais)
for a water and sewage network
in Taif. Saudi Arabia. The .con-
tract awarded by the Saudi
Western Region Water and
Sewage Authority, involves
884 Ion of potable water.- sewage
and storm drainage pipes to be
completed in three years.

Government to reviSew
industry standards polity

BY DAVID DODWHJ.

LORD COCKFIELD, Britain’s
trade secretary, yesterday an-
nounced plans for a major
review of industrial standards,
policies in Britain: The aim is
to enhance the quality, relia-
bility and export competitive^,
ness of British products-
The review may lead to fee -
Government authorising a :
“ national mark ” tor all goods
meeting required standards. It
may also lead to a national,
register of firms whose manage-
ment systems have been
assessed and approved by large-
scale government purchasers,
and by bodies like '. the. British
Standards Institution (BSI), the
national standards-maklng body.

The BSI has been asked to
review all national standards.
The Government is also about
to publish a consultative docu-
ment on standards policy.
Copies should be available
before the end of July.

Apart from encouraging the '
wider use of- strong standards,
which Lord Cockfield described
as “ a pre-requisite of success- ‘
ful competition in world

markets,” the Government wifi
be asking nationalised indus-
tries, public corporations,
public regulatory bodies and
purchasing authoritaexto relate
their needs to standard*. :

This 'move wftt pot consider-
able pressure oh private" in-
dustry to enforce - , new ■'.and
stronger standards as and when
they are- introduced.

The policy outlined by .land
Cockfield is strongly influenced
by West German .experience,
where a strong national stan-
dards system has been in opera-
tion for many years.

This policy is widely believed :
to have played an important
part la ensuring Germany's
excellent reputation as an ex-
porter. and has' aided its export
performance in recent/ye&rs.

Government officials do not
expect to be able , to adapt the
German system, wholesale, “ but
We can move a good way. to-
wards it without changing
existing laws, and by . using
Government influence where
possible .” 1 v.

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:HnaacjaI : , Times Tuesday June .8 .1982

UK NEWS

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• forecast
, by 1990s

*. Iy RajrOtfter, Energy Editor

tn~ -■ , /-.■ . .: ■ • ■ ■

Iff BRITAIN IS likely to become a
-fc 3 substantial ■: net importer of
B-T -energy in the. 1990s, according
■t to a study published today-

‘Z Although the UK is producing
^ a considerable surplus of crude
^ oil apd coal, in a few years it
, will begin to rely on net import^
again, says London-based con-
l“ snltants, DRI Europe.

^■_. -"The tunt around would, arise
£ 'mainly as a . result of the
t tx depletion of the UK’s coal and
ic- gas- reserves. But the National
Coal Board could also fl"d itself
ar competing against rising imports
3T? ; of steam-coaL

Jc- UK oil production, just more
than 89m tonnes last year,
^should rise to a peak of 111m
tp tonnes by 1988 and slide to 77m
tonnes by the turn of the
Ei^century. -

*7~ Net annual oO exports should
-£ reach a peak of 30Bm tonnes
in 1987. However, by the
Ht-:- second half of the 1990s it would
B> be necessary to unport-r-on. a
-e. net basis — almost 4m tonnes of
a.' mi a year.

Natural gas imports would be
even greater. By the iate
1990s pet imports could be the
■* dqurvaient of 18m tonnes of oil
nr. annuaJIy.

?? TSie .report says the 1 recent
revival in the coal industry’s
prospects is likely to fatter in
f r the next few years as a reisult

* of depressed energy demand,
-**■- particularly v. in ~ electricity

generation,- V.

SE UK coal production is . ex-
peeted to rise from 127m tonnes
last year to 134m tonnes In
***••1990. By the turn of the ccd-
”*'■ tuiy output may reach 153m
'*- tonnes— far short of the NCR’s
target of 170m. - . •

" The likely comparative cost
1, • advantage of snported steam-
f e coal over domestic production
’ w was expected to attract more
than 3-im totmes a year of ish-.
ports by the year 2000.

DRI. ffwecasts that nuclear
- power output will expand in toe
next 20 years to provide 21.5
per cent of toe country’s
eleetcwity and &5 per cent of
total energy supplies, against
less 4.5 per, cent of total
energy needs last year. ;

GFOwth.io Western Europe’s,
primary energy coasvanptiou is

to ftdSr to zeal tennSr unta 1985

$202.15 by toe year 2000.

Incomes policy ‘could cut dole queues by 1m’

THE Social Democratic Party’s
■Economic Policy Group ', has
proposed' :a^ permanent incomes
polkiy in support of measures
to reduce uaemployment by lm,
which it says "could be achieved
within two .years. . \

The proposals come -.in the
front- of the party's' Green
Papers, previewed in the Finan-
cial Times du. A pril 22 and. pub-
lished yesterday. : ; ■ , .

.The 34-page paper discusses a
shift .-in macro-economic policy
from the present Government’s
approach, special measures to
contain unemployment, and dif-
ferent types of incomes policy

The paper will now be dis-
cussed during toe summer by
SDP area parties and by groups
outside toe party before being
revised and ' submitted - : for
approval as offirial policy to the-
SDP’s ruling Council for Social
Democracy at its first meeting
in Great Yarmouth in October.
That meeting wflt also consider
a draft, paper on industrial
strategy -and one- other.

The industrial strategy paper
will be produced by toe end of
this month, with papers on in- .
dus trial democracy and trade
union reform in July, and on
taxation and social security in
August

‘ The economic paper has been

prepared by a ' committee
chaired. by Mr Roy Jenkins with
Mr John Horam, the MP for
-Gateshead West, also playing
-a major part.

. The central theme of toe
paper Is that toe Governments
approach has been unnecessarily

expansionary budgetary policy
designed to increase capital
investment and -to keep doWn
costs and prices including, for
example, a cut in value added
tax to 10 per cent, abolition of
toe national insurance sur-
charge, ^ and moderation In

tives, to move towards toll
employment.

The exchange rate, should be
set so as to . maintain the
competitiveness of UK , pro-
ducers against overseas rivals,
ensuring that the , current
account Is kept in balance over

cent— over the Idfetime of a full
parliament.” Thin compares
with just under 12 per cent for
adults, now.

Budgetary policy would be set
to delver output and employ-
ment targets only if toe-
inflation constraint was not

Peter Riddell reviews the SDP’s Green Paper on the economy

destructive while the Labour
Parly has failed to face up! to
the problem of how to expand
■without accelerating inflation.

The underlying, though un-
stated assumption of toe
analysis is Keynesian, while
taking into account toe view'
that money cannot bo ignored.
Some of the views are not dis-
similar to those of many
.Treasury and Bank of England
officials. .

■ The SDP advocates a concen-
tration on a balance of separate
real objectives for output, em-
ployment and prices and. not
just one objective, sucb as
reducing inflation. It would not
treat intermediate targets— such
as public borrowing and toe
money supply — as of central
importance.

'Hie group -wants to see an

nationalised :industry pricing.
These measures might be
adopted in two or three succes-
sive budgets, cutting unemploy-
mem by 400,000 over two years.

Special employment measures
focused on the hardest hit
groups — the long-term un-
employed. the., young, those
aged over 55, and women —
could reduce- unemployment by
600,000 says the paper. Apart
from these - ready - reckoner
figures, to ere are no detailed
estimates of toe impact of the
proposed measures on the
economy.

Monetary policy should aim
at keeping interest rates as low
as possible witiwu the limits set
by international conditions, says
the group. Both fiscal and
monetary policies should be
used via exchange rate objec-

toe medium term. The reserves
should be used to iron out any
temporary pressures.

An attempt should be made
to secure general ’agreement in
Europe on measures ' for an
economic expansion add the
promotion of employment, and
negotiations should be held
about the possibility of joining
the European Monetary System,
says the paper. The group
believes sustained expansion
will depend on establishing
some form of- incomes restraint
Expansion would be focused
particularly on boosting em-
ployment.

The paper states that the
general approach “ makes' it not
impractical to aim at reducSng
unemployment to toe level
which it was when Mrs
Thatcher came to power — 5 per

'endangered by excessive wage
demands.

The paper says pay restraint
win involve a national forum
ill which prepay round discus-
sion can take place on toe
basis of the best available fore-
casts for the economy. * struc-
tured approach, to public sector
pay, particularly in those ser-
vices where the Government is
the direct employer, and some
means of restraint in toe pri-
vate sector, though excluding
smaller companies.

The policy would have to be
permanent and flexible, must be
seen to be fair but cannot be
entirely voluntary.

The policy group lists three
broad options —

' • Re-establishing a central
pay board which would
administer a general guide-

line and consider exceptions —
in effect, a revamped Prices
and Incomes Board.

• Extending the use of arbi-
tration, and introducing tax
incentives for the commercial
sector.

• A minimalist approach with
a fully-worked out structure in
toe public sector combined with
an agreed voluntary guideline
in the private sector:

The paper states that the
second option' has some advan-
tages in principle, but all three
will need further consideration.
A special conference is being
held with trade unionists and
business managers on this issue
in mid-July.

Mr Jenkins described toe
arbitration inflation tax idea as
having advantages in principle
as tbe "most exciting and noveL”

The paper stresses that pay
restraint in the private sector
should allow decision-taking to
continue to be decentralised and
to work in sympathy with,
rather than in opposition to,
market forces.

Totoords Full Employment: A
Cammonsense Approach to-

EcoTiomic Policy , SDP . Green
Paper Number 1, available for
£1, including postage, from
SDP, 4 Cowley Street, London,
SW1P 3NB.

Duty-free sales help to lift airports authority profits to £38m

BY MICHAEL DONNE, AEROSPACE CORRESPONDENT

TRADING PROFITS earned by
toe British Airports Authority
in the 1981-82 financial year
rose by about £2m to over £3 8m
on a Current Cost Accounting
baas, according, to preliminary
unaudited figures.

The net profit is provisionally
estimated to have risen by
about £3m to £22 ,3m, after
allowing about £14nx for taxa-
tion, phis the cost of moving
the authoritiy’s head office from
Central London In Gaftwick Air-
port.

The ftitt accounts are. not
expected nntil later in toe

summer, but sufficient inform-
ation is available to show that
the authority earned a return
on net assets of about 5.6 per
cent or slightly below toe 5.9
per cent of the previous year.

As in other years, a sub-
stantial proportion of the profit
—about 80 per cent — was
earned from the sale of duty-
free goods and toe provision
of other concessions (such as
car hire facilities) at the seven
airports run by the authority
Heathrow, Gatwick, Stansted,
Edinburgh. Aberdeen, Glasgow
and Prestwick.

MB loans for projects
in Wales and Scotland

. by JAMES McDonald

The European Investment
Bank* ha* lent £9m towards
water supply and sewerage
works in .Wales and £4m
: towards ’ the expansion and
Modernisation -of small Indus-
' trial and tourism, ventures In
_ Scotland's Assisted Areas.

'the Wjisb loan .— which
is also aimed at improving
conditions for industrial and
tourism development — has
?been granted for 10 years at
13.1 per cent to toe National
.Water Council, which will
pass .on toe funds, to toe
Welsh Water Authority.

. It brings to more than £3 8m
toe total lent since 1977 by
. tbe BIB towards water supply
and sewerage projects In
Wales. Tbe cost of toe works,
to . completion in 1985, is
estimated at £38 .5m.

Tbe Scottish loan goes to
the Scottish Development
Agency and toe Clydesdale
Bank, which will lend the
money to businessmen.

Mr Alex Fletcher, toe
Scottish Industry Minister,
said toe loan scheme would
help create 400 jobs.

Kangol warns on seat-belt danger

BY OUR MOTOR INDUSTRY CORRCSPONDaff

ABOUT 1.5m oar seat-beta need
jrv-Eepair «r icvtocdment, says
9. BongoA Magnet, a Canhste group!
iL wtaffch j**™™ to supply most
seatibeMs in Britan).

Tbe company is owned by the
.Harman Group of Caffiforoaa. It
* teats set up a neickamride network

of specMist seat-belt fisting and

advisory centres to cope unto
toe expected rush when toe law
reqnanng toe wearing of front,
seat-beta becomes effective toes
year.

About 70 centres have been
set up. Mast are operated by
TMT ‘Marabou Radte&or Services.

Kangol hopes that up to 1,500
local garages wall display toe
national seat-belt fitting centre
symbol and refer customers. to
toe specialist centres.

• The proposed laws wiH make
cOmpobozy the wearing of seat-
belts by drivers and front-seat
passengers. The Bill awaits its
Third .'Reading because of
delays to the. parliamentary
calendar arising from the Falk-
land dispute. •

The company’s decision to
launch the-, network follows
research which showed that
with more than 15m vehicles oh
the road and a current seat-belt

wear-rate of about 25 per cent,
a total of 22.5m seat-belts may
be currently “unused."

Kangol said there was, accord-
ingly, a requirement for inspec-
tion and possible repair to, or
repteeement of, 1.6m
“potentially dangerous" seat-
belts in 750,000 cars.

This assessment was based on
toe assumption that 10 per cent
of toe remaining 16m belts bad
been “ abused to tbe point
where there was an actual
fault 11 and that vehicles less
than three years old were dis-
counted.

fiNapaK-Sezmne ffi Gecfito IndDStdale

US $ 2731,000
Medium Tam Loan

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Tbe authority has steadily
built up this ride of its income
over the yearn and now it is
so substantial' (amounting to
over £100m income in 1980-81)
toat it significantly helps to
keep down toe costs of landing
fees and charge* to airport
users.

The authority is, however,
concerned about what it
regards as a- real threat to this
lucrative- source of income —
the EEC Is seeking to restrict
sales of duty-free goods within
EEC countries.

The EEC wants to implement

a directive issued some time
ago prohibiting toe duty-free
sale within toe community of
goods manufactured outside it
such as cameras, watches and
other goods, for example, from
Japan or the U.S.

There is pressure for this to
be extended eventually to cover
the sale of all duty-free goods
for intra -community travellers,
although the sale of such goods
to travellers to countries out-
side the community would still
be permitted.

One argument in favour of
such a move is that the benefit

of duty-free goods is gained
only by air and sea travellers —
and not by those moving over-
land.

But it is also being argued
that many industries, especially
those dealing in luxury items,
could be severely affected by
the move, while some airport
authorities. including. the
British Airports Authority,
would lose revenue.

The BAA is discussing the
implications of the directive
with the Government and the
EEC and there is considerable
opposition to the plans from

Continental airlines and air-
port owners.

So far, nobody has imple-
mented the directive, but K is
thought likely that the EEC
will insist upon member-
countries doing so unless suffi-
cient political pressure can be
generated to kill toe measure.

The BAA makes no secret of
the fact that if toe EEC moves
are successful, its own income
from duty-free sales, would he
severely hit, and that as a
result landing fees and other
charges would have to rise^.

Jersey to
decide on
French
power link

By Edward Owen
JERSEY’S PARLIAMENT
will be asked on June 22 to
give final approval to a plan
to establish a submarine
cable link with the French
electricity grid.

The scheme, which is likely
to cost more than £10m, was
approved in principle a year
ago.

It is aimed at reducing toe
island's dependence on elec-
tricity generated by oil-fired
generators and at stabilising
prices,

Merz and McLellan. the con-
suiting engineer, was called
in by toe parliament after last
year's approval in principle to
give MPs information on
which to make a final decision.

It concluded that a Hnk-up
with Electricity de France
would be more economic than
boil ding a coal-fired power
station.

A marine survey commis-
sioned by tbe Jersey
Electricity Company has con-
firmed the feasibility of laying
a cable from a point near
Portbail on the Normandy
coast to the east cost of the
island. .

Electricfte de F ranee has
undertaken to supply Jersey
with 45 Mw for tbe firat three
years, after which the amount
would be renegotiated on a
three-yearly basis.

There has been strong
opposition to the proposed
cable link from environ-
mentalists worried about
nuclear developments on toe
nearby Co ten Lin Peninsula.

They claim that, in any
case, a coal-fired plant would
be a better long-term solution.

Tbe plan has also been
attacked by one local politi-
cian on the grounds that It
would make Jersey dependent
for much of its energy supply
on a foreign country.

IN

ECCNCMY

THERE’S

ft

As Europe's largest manufacturer
of domestic appliances we’re well
aware that expansive can also mean
expensive.

Which is wiry we’re extremely
economy conscious in everything we
produce, and the way in which we
produce it.

So we not only optimise the energy
efficiency of our production methods
but we also produce appliances that
really mean less running costs.

Washing machines that save on
washing powder and electricity.

Dishwashers that use less water
and less electricity.

Refrigeration products that keep
energy consumption toaraimminiL

Even ovens that use heat better
and so cost little to im

When it comes to eetmamy, Z is for
ZanussL

^ZANUSSi

10

Financi al Times Tuesday June « 1982

UK NEWS

Crisis will not spur inflation— Biff en

BY MARGARET VAN HATTO4, POLITICAL STAFF

THE Government’s detennina- be redeemed on tbe cheap.” he the country early were “ who31y .growing concern about the In anticipating awkward
tinn to hold the next General said. " Let it be clearly stated mistaken." he added. The next longer-term impact of the Falk- questions likely to arise, they

Election as late as practicable that the costs being incurred General Election might he as, lands crisis and the Govern- are anxious to divert attention

and to fight it on its record in the South Atlantic have to much as nearly two years away.* ment's chances of seeing out

in bringing down inflation, be met from a variety of non- Mr Biffen’s comments, echo- its full term,

despite the Falklands crisis, inflationary sources. mg points made by ntijer minis*

was underlined yesterday by "These may include the ters .over the past fortnight,

Mr John Biffen, Leader of the adjustments of other items of reflect the Government’s gruw-

public spending, taxation, and ing sensitivity to Labour accu-
borrowing limited to a scale and .sations that it is exploiting the
in a manner that does not give Falklands crisis for electoral

gain.

Commons.

The cost of the Falklands
action might he high but it
would be met through non-
inflationary measures such as
spending cuts and higher taxes.
Mr Biffen told Brent Conserva-
tive Association.

"National honour can rarely

rise to inflationary pressures.”

Speculation that Mrs Thatcher
may have been encouraged by
the recent by-election victories
in Beaconsfield and in Merton.
Mitcham and Morden to go to

• Host ministers seem to
assume a successful military
outcome but some appear appre-
hensive about mustering the
international support' needed
for the type Of administration

back to economic issues where
they consider the Opposition to
be on weaker, ground. ..

Nevertheless, their confident *®T ,J. e env ^ a S ed

assertions about economic indi- toe Pnme Minister.

Gators and prospects for econ* They are also sceptical about
omic growth over the next: 18 Mrs Thatcher’s plans to boost
months or so appear to mask a . the islands’ economy.

Jenkins camp tries to dampen Owen fervour

BY EUNOR GOODMAN, POLITICAL CORRESPONDENT

THE INFIGHTING over the
SDP leadership intensified
yesterday with the first
sally from the camp of Mr
Roy Jenkins, the party's
elder statesman.

sir Tom Ellis, one of Mr
Jenkins' closest supporters,
hit hack at those who had
argued that Dr David Owen's
performance during the
Falkland Islands crisis had
shown him to he better
qualified to lead the party.

Mr Ellis, SDP Member of
Parliament for Wrexham,
appealed to party members
not to elect the " wrong
leader " as a result of a
'"collective emotional spasm."
Just as it would be wrong
for the Government to
exploit the Falklands situa-
tion hy calling an early
election, so. he anrued. "We
in the SDP must not turn our

party leadership election
Into a tfiald one. ”

The SDP, he said, must
forget the Falklands and
“ instead coolly and dispas-
sionately ask ourselves which
candidate is the one of world
stature, which candidate has
the proven track-record,
which candidate is the
radical one who has been
most anxious to form the
alliance and to be rid of the
old-style party politicking,
which candidate could most
easily assume the leadership
of the alliance, and . . .
which candidate would com-
mand the most enthusiastic
support of his parliamentary
colleagues. "

Mr . Ellis also responded
angrily to suggestions from
Dr Owen’s supporters that
their candidate would turn
the SDP into a more

genulnely-radical party than
the lnnately-ctriissrvativft Mr
Jenkins. The real issue, Mr
Ellis maintained, - was
"whether ont of disillusion
with the' Labour Party, we
merely replace it by another
party of a slightly better
image or whether we change
the whole system of British
adversaria] politics."

Nominations for. the SDP
leadership close on Friday.
Neither Mr Jenkins nor Dr
Owen' has formally declared
himself a candidate. Yet
behind the- seenes, the
manoeuvring has began in
.earnest and the signs are
that the contest could become
very hitter, opening up funda-
mental disagreements over
the party’s direction.

Over the last few days, Dr
Owen’s supporters have been
doing all they can to dispel

the idea that Mr Jenkins goes
’ into the contest as the firm
favourite. They have pointed
out that Dr Owen has im-
’ proved his standing by his
performance during the
Falklands crisis.

-Mr Jenkins’ supporters
cl aim to be fairly confident
that he wQl win. But Mr
Ellis' speech indicates how
worried they are, and how
irritated they have been by
the tactics of Dr Owen’s sup-
porters. Both candidates have
agreed to keep their public
campaigning to a minimum
so as not to do anything to
encourage the idea of a
divided party.

Mr Ellis’ speech also points
to the tactics of Mr Jenkins’
supporters. They will present
their candidate as the experi-
enced politician, with a deep
commitment to changing the
British political sy stem.

Welsh parties set their sights on July contest

Br ROBIN REEVES

BEHIND THE scenes prepara-
tions for the first parliamentary
by-election in Wales for more
than 10' years were underway-
yesterday after the death at the
weekend of Mr Lfor Davies,
Labour MP for Gower.

While there were some hints
that Labour might delay moving
the writ for the by-election until
the autumn, the other political

last election he held the - seat
with a majority of 10.641, but
subsequently announced bis
intention of standing down at
the next.

. A new prospective Labour
candidate is therefore already
selected to contest the seat. He
is Mr Garath Ward ell, 37, a
lecturer in economic geography
at Trinity College. Carmarthen.

parties were taking no chances. He also works as constituency felt that my standing would help party’s left wing.

as the likely casdidate-for -the SDP shortly after losing- the
SDP-Liberal Alliance He is Mr Gower Labour nomination con-
Gwyuoro Jones, who was Labour test. He was Mr Roy Jenkins’

MP for Carmathen between 1970 parliamentary private secretary
and 1974 when the seat was re- during his period as- an MP.
taken by Mr Gwynfor Evans, The Conservatives have still
then Plaid Cymru’s leader to select their candidate. Plaid
Mr Jones last night did not Cymru is putting forward Mr
HiJeout standing for theSDP. Ieuan Owen, 29. an office that thS w£b~m£^“tD I m N. Ireland
Nothing has been officially dis- manager in his family’s contract- persuade him to resign. '

cussed, but if it is generally ing business. He. is on the — ~ v

Counter to

Labour

in-fighting

By Efinor Goodman

HFftTBFRS of Labour’s National
Executive Committee yesterday
reviewed the party’s appalling
performance in recent, by-elec-
tions and agreed that the only
.way it could possibly win the
next election was by ending in-
fighting and concentrating on
getting its policies over to the
electorate. . . , .-

Another meeting between the
NEC and Trades unions for a
Labour Victory is to be held in
July. Meanwhile, Mr Michael
Foot, the party leader,, is to teH
the shadow cabinet that any
time they get on television must
be nse'd to put over ‘ party
policies rather than party dis-
agreements.

- The organisation committee
considered the party’s showing
in the May local elections,
together with the results of the
last five by-elections— -in all of
which Labour has been pushed
into third place. All speakers
apparently Warned this- slump
in support on continued internal
bickering— even though there
was a determined effort in the
run-up to the local elections to
buiy differences. - - -

Mr Tony Bema, who most
Labour MPs would probably say
bore most responsibility for the
new upsurge of Infighting, said
nothing. Neither was any men-
tion made of the report into
the activities of the Trotskyist
Militant Tendency.

Since last week’s by-election
in Mitcham, some Labour MPs
have been saying that the only
way Labour can recover is if
Mr Foot, stepped down as
leader. But at yesterday’s meet- j
ing.

training

harm MSC’

By lie Wood

THE ..FUTURE of the
Manpower Services- Commis-
sion and its programmes for
the Jobless could be at risk
if the Government to
"accept the commission's
latest ' Youth Training pro-
posals, says Youthafd, a
pressure group lobbying for
young unemployed. -

Mr Norman Tebbit, the
Employment Secretary, - has
said the Government intends
to stop 16-year-olds who refuse
a place oh the scheme, due to
be'intTcdneed nest year, from
riafmiug •' supplementary
benefit In their own right.

• - The’ Sssne drew criticism
from the TUC and commission
repre sentati ves. They formed
a task group and say 16 -year-
olds not prepared to join the
year-long work-experience and
training scheme should still
qualify for benefit. Mr Tebbit
Is due to respond to the
group’s report this mouth.

CFare Short, Youthaid
director, commented yester-
day on speculation Mr Tebbit
would insist on removal of
supplementary benefit. She
said: "It is difficult to see
how the Government could
justify insisting oa compul-
sion as this would seriously
endanger a scheme supported
by aH those concerned with
youth -training and designed
■within the *£lbn limit.

“ A highly-placed source in
the TUC believes the general
council would refuse to bade
any new scheme which is
compulsory. The consequence
of this would be a withdrawal
of trade union support, grave
difficulty even for the con-
tinuation of YOP and almost
certainly the break-up of the
commission ifeelf.”

A recent Commons employ-
ment committee report
advised Mr Tebbit he should
not allow, his wish to withdraw
the benefit to prejudice the
scheme’s introduction.

8Y SUE CAMSbON

is

BRITISH PETROLEUM
Selling its 15 per cent stake izr

arefc •

BP. ipcaDcetfratihg its North

I Potter y ,a y- offe

They are getting ready for a
contest in mid-July.

Mr Davies, who was 71.
became MP for Gower in 1959.
and served for a time as a Welsh
Office junior minister. At the

agent for Dr Rogert Thomas, the the advance of the party I Voting in the 1979 general
present Carmarthen MP would be happy to consider it” election: Labour 24,963 f 53.42

• In the battle For the Labour he said. per cent); Conservative 14322

nomination in the Gower con- He has been closely involved (30.55). Liberal 4.245 (9.05),
stituency Mr Wardell beat a man in the party’s development in Piaid Cymru 3357 • (7.16).
who was yesterday being tipped . Wales, having switched to the Labour majority 10.641.

It -was agreed that there
should be a meeting between
the organisation committee and
the candidates and agents who
took part in the past five by-
elections. Rallies are to be held
-in the autumn to try to explain
Labour’s policies to the public.

BALANCE OF TRADE

Exports Imports
£m seasonally adjusted

Exports Imports
Volume seasonally adjusted
1975=100

Terms oF trade
Unadjusted
1975=100

Oil

balance

Art

Non-oil exports sluggish

BY MAX WILKINSON

1979

1980

1981

19*2

1981

1982

40,687

44,136

125.7

125.6

' 1063

— 731

47,396

46^11

1284)

119.1

103.7

+273

l*t qtr.

11,768 *

10,092

121 J

1043

1054)

+790

2nd qtr.

n-a.

17,170

no.

. 114.7

na

na

3rd qtr.

n.a.

na.

na.

na

na

na

4th qtr.

13,850

13,368

131.7

1263

993

+693

1st qtr.

13,275

13,051

125^

123-1

1014)-

+652

January

4,013

3317

1244)

102.6

• 1063 • •

+211

February

3,807

3373

718.9

107.8

10S.I

+230

March

3.948

3302

1223

102.9

103.7

+349

April

A 100

3,400

127.1

104.7

1033

+301

May

n^.

3A60

na.

1203

. na

na

June

na.

3,910

na.

118.7

na

na

July

nj.

4307

na.

126.9

na

na

August

no.

n^.

na.

na

na

na

September

4,473

4315

1294)

129.2

99.6

+291

October

4,646

4350

1353

1223

98.9

+ 74

November

4*563

4,792

129.7

1363

100.1

+205

December

4.641

4326

1304)

1203

1003

+419

January

4,258

4,410

118.9

123.4

1013

+168

February

4,433

4^84

4379

1243

120.6

101.6

+270

March

4362

1323

1253

1013

+2)4

MOST OF the 250-strong
workforce at the Beleek
pottery in Northern Ireland
is to be laid off for up to eight
weeks because of falling
sales. The company said that
exports of its china products,
particularly to the U.S., had
declined significantly.

Earlier this year -the com-
pany shelved an expansion
plan at its Co Fermanagh
factory until trading condi-
tions improved.

The pottery hopes to
resume normal product! mi in
four to eight weeks and said
that stoeks were adequate to
deal with_acy. likely d em a nd
dozing that period.

the North Sea Beatrice fifefd to Sea operations on Adds where
London and Scottish .Marine Oil - it is operator, or. in which it
for £75m. . has a riswtMe Lasmo,

The sale, is to be backdated .-being-. a '^smalter-Cotopattfr can
to the start . of thfe year, pro- expect ’radre ^eoKtms North
vided it is approved by the Sea tax eop c esstous jrogi fe
Department of Energy and share m _ Beafince -than. JSP
Lasmo’s shareholders. - . . could, have obtained.

The ' deal wiH come as no • Last 'night Lasmo stressed
surprise to the oil industry, ‘that the acquisition would, pro-
Earlier this year. BP admitted vide, it with e ** s i gnifi cant ”
that it was th i nking of selling ad^tiprai source of North; Sea
its interest in the Beatrice field, petroleum” and would .riso
and last night it said it had make i positive contribution
been approached by a number . to. cadi flow - and earnings”
of companies. , ' Lasriso’s' -1981 net profit was

One comuany known to have 4541m-' ■ \

been interested is the British ' The Beatrice fiekV wfiirtv is
Nation a rOil Corporation, which in theTHoray Firth only 12 miles
has a 28 per omit stake in Beat- from the coast, was discovered
rice is the operator on ike- in 1976 ..and - teas recoverable
field. But it is thought likely - reserves q£ . 117.5m baraefc. . It
that BNOC was not . prepared came, into .- production ^-last
to pay as much as Lasmo. - September, and. produces 30.0 00
The price is . slightly higher barrels a day^.Peak production,
than expected. ’ Most industry which is expected to be reached
experts had put a market value in 19S4, 7 win. be 40,000 barrels
of between £65m ; and £70m on a day-. - . . ■-

BP’s interest in the grid The other members, of the

However,' . , the deal./ ' with Beatrice consortium ; or com-
Lnstno includes the whole of panies are .peminex CUKLOu
BP'S stake in tire acreage eov- and Gas with 22 per cent. Hunt
ered by licence £187. and there Overseas Oil with 10 pmr cent
are bones, that .further, oil and’ Xerr McGee write 25 per
discoveries w31 be made in the cent

Half-price
computers
for doctors

By jason Crisp '

THE GOVERNMENT ..is . to
spend £2J?m on encouraging
doctors to use computers to run
their general practices.

The Depa r tment of Industry
wiH pay half the cost of p ro-
v idin g microcomputers systems
costing between £6,000 and
£14.000 for 150 practices as part
of Information Technology Year
(IT82).

The' subsidy will be available
on microcomputers supplied by
CAP, one of the larger soft-
ware houses, and British
Medical Data Systems, a joint
venture . between' BOC and
Shared Medical Systems, a U.S.
company.

THE UNDERLYING volume of servants’ dispute. A new method
Britain’s non-oil e xpor ts ofcollecting data introduced in
appears to have been relatively October has also made the
static tor three years, accord- series difficult to interpret. . _
ing to official figures issued .The trading pattern also CoillStOlft Slate
yesterday. seems to have been erratic last p . n .

The index for the volume or year, with a surge in exports tJUJuTj lu rcuptfl
non-oil trade in the first three and imports in the autumn. This BURLINGTON SLATE
months of this year was 117.5 has been attributed in part to
(1975=100). This was almost the fact that companies were
the same as in the last three .starting to run down their
months of 1980, about 2 per cent stocks at a slower rote,
below tbe level for 1980 as a While the underlying trend
whole and 1* per cent below of non-oil exports over the lust
the volume for 1979. These three years appears to have
rather small differences are per- been fairly flat, there appears
haps surprising in view of the to have been a steady increase
major fluctuations of com- in the volume of non-oil imports,
petitiveness and of the exchange This index stood at 14&5

(1975 = 100) for the first three
month of this year— 17.6 per . ,

cent higher thau in the last [ r majffCe package
three months of 1980.

rate- during the period.

Last year’s export and import
pattern is still obscured by gaps
in the figures, left by the civil

of

Coniston, Cumbria, plans to
reopen a small quarry on
Coniston Old Man which has
not been worked since the
early part of tbe century.

The Low Brandy Crag
quarry contains good quality
silver grey slate which is
common on roofs In the area.
The company proposes to
extend the old working face
and tipping area.

Companies’ health benefit costs spiral

A GROUP of Britain's biggest
companies has asked the British
United Provident Association
(Bupa) to draw up a new health
insurance scheme for em-
ployees to try to limit the rising

Raymond Snoddy reports on a scheme aimed at
limiting the rising cost of private medical care

the- fact that Bupa will declare
an actuarial loss at its annual
general meeting on Thursday.

There seems little sign that
increase in private health, in-
surance will come down to the
level of general inflation.
Charges for individual Bupa
cover rose by 20 per cent in
January.

cost of private health care. hospitals whose charges are no said. blunt Bupa, he says, has only

Thirty companies, all in the more than those of Nuffield -Bupa, which is non-profit just realised the impact of tire

list of top-100 UK companies, clinics (a charity sponsored by making, provides cover for true coat of modem hospital

have asked Bupa, the country's Bupa), Bupa hospitals or pay about 3m of the 4m people care— whether delivered by the

largest private health insurance beds m National Health Service covered by private medical '

organisation, for a scheme with teaching hospitals. surance in Britain.

fixed limits on what can be Those wanting to use more One of the 30 companies, gained for. " 10 and 20 per cent higher,

claimed. .. . expensive clinics will have to Ranh Xerox, which introduced Mr Derek Bamerell, chief 50106 P^ple also believe that

Under the present plan, in. pa y the difference. private health care for its executive. of Bupa. rejects any there sxe growing signs of seg-

which companies pay for health Tbe scheme will be on offer 12,000 employees last year, has idea that Bupa has been getting mentation within the UK

later this year. already set those limits under health care on the cheap and Private health sector. High-

■ “To help contain costs we its scheme. It is also asking points oat toot the cost of pri- technology hospitals at the top

have been asked to draw up employees to pay tbe first £20 vate medicine is rising all over 6nd . °* the market — often

for small companies

AN ACCOU NTAN CY, finance
and administration . package
for small to medium steed
businesses was launched yes-
terday by Unilever Computer
Services, a subsidiary of
Unilever, and H and H
Factors, a member of the
Waiter E. HeDer Inter-
national Corporation.

The package comprises bulk
factoring ' from H and H — •
including Immediate advance
payments .of up to 75 per cent
on a company’s sales invoices
— while Unilever provides
the hardware, software and
back-up facilities.

. ^ The fees for annual

in- NHS or by the private sector- todiivdual contracts running out Aberdeen n r«ed fn
and it .Is more than they bar- /J? 1 wiU be l5Ctween | ADe ^ ae ^ a ur 8 ea

in “ rebuild image

ABERDEEN— often

cover for their employees, there
is no limit. Premiums for the
two-year contracts reflect Ibis

with increases of between 20 -fixed benefit levels rather than of any medical bill.

and 200 per cent recently.

Under the new scheme, affect-

open-ended ones, based on
medical standards, not luxury.

" In the first year a great deal
of use was made of the Bupa

ing more than 100.000 people, Mr Derek Allan. Bupa’s gen- scheme. Of course, this is quite a**>m the growth in ancillary
employees will be asked to use era! manager for marketing 4 ' ■■ -

/M)

ljubljanska banka

US$25,000,000 Floating Rate Notes due June 1987

In accordance with the conditions of the Notes notice is
hereby given that tor the six-month period 7th June 19S2
to 7th December 1983 (183 days) the Notes will carry an
interest rate of 15}J% p.a.

Relevant Interest payments will be as follows:

Notes of 85,000 US$398.72.

CREDIT LYONNAIS
Luxembourg
Fiscal Bank .

CREDIT LYONNAIS
'<££fthm
Agent Bank '

natural but the company was charges made by some clinics,
concerned that the cost would ■ A bill paid by Bupa tor the
continue to rise,” the company same surgical process at one
said. hospital was £4,022 and at

Costs vary friun company to soother £2.959. The difference
company but annual cover per accommodation charges was
employee, including family, for .. .. _ '

a company such as Rank Xerox ® ut ^ one ■ e charge

would be around £130.

Earlier tins year another
company, one of Britain's largest
employers, specified nine
London hospitals for whidi fun
private health fees would not be
met

At the annual general meet-
ing of Private Patients Plan,
roe second-largest ' medical
insurance' group, ' Mr John

the world, partly because of foreign owned — may increas-
tedmological advances. prove too expensive for

He is particularly concerned aU-inclusive company cover.

Until a few years ago, Mr
Allan points out "we didn't
have these high cost hospitals
and everything was within the
range of the NHS charges.* 1
Mr Robert Sawyer, patient
services officer at the Churchill
Clinic in London, believes he
can see some evidence of a
split at his hospital.

With room prices held down

wrongly
described as a “small fishing
village raped by oil gSants”
and tbe victim of exaggerated
44 often blatantly untrap,
stories of sin and exploits?
tion must rebuild its image -
as a major visitor centre, Mr
Alan Devereux, chairman of
tile Scottish Tourist Board,;
said in Aberdeen yesterday.

Long term, tourism would
be more important to.
Aberdeen than ofl, he said at'
tbe opening of tbe city’s new?
tourist information centre.

was £191 and in tbe other £91.

Pathology fees were £146 com- . —

pared with £25. The greatest , a da F- toe percentage
difference was a fee of £578 for o£ British patients has increased
“ special nursing." In tbe other 9? er toe past 12 months from

Child neglect

hospital muring was included
in toe day charge.

Part of Bupa’s rise in costs
is accounted for hy a 30 per
cent rise in the number of

58,4 to 68 ner cent
At tbe Cromwell Hospital in
West London, . Mr Th omas
Hayes, chief executive, says he
would like to attract more
British patients, but the per-
centage of foreign patients is
running at. 70 per ceat
Room charges of £170 a day,
he believes, are not unreason-

claims— in the past two years,
ra&ipsrpw”' Salmon, "itd °L e P 6 ™* 1 of most rapid growth
Price increases “such, as pur^ groups such as police, to

competitors are now reporting «« not unreawn-

can discourage the development - oUt COver for ^ able considering the fact that

of medical insurance and- pri- ' Bupa hopes the rash of claims the Cromwell is an acute-care
*ate medicine." • will turn out to he a once-and^ hospital offering treatments

Ur Stanley BaKour-Lynn, tor-all catching up on a backlog usually only found to the NHS,
chairman . of the American of treatment for ailments. including radiotherapy treat-
group, AMI (Europe), is more The rise has contributed to _ meet for cancer patients.

cases increase
CHILD NEGLECT cases
handled by the National .
Society for the Prevention of
Cruelty; to Children have risen •
by 17 per cent in two years.

The society said in its
annual ; report, published
yesterday,, that the effects of
neglect could be as serious as
physical abuse.- It handled
some %214 cases of neglect
and 1,475 cases of physical
abuse In 198L
Dr Alan Gilmour, director
of tbe NSPCC, said:

Research indicates that Child
deaths in neglecting famili es
are far above the average.” ■

. The decirion has met substan-
tial criticism from other sup-
pliers of computer systems tor
general practitioners. Only a
little more than 50 general
practices are using computers,
and the other companies betieve
15Q half-price systems ' will
absorb tbe total market In the
short term.

The General Practitioners
Computer Suppliers Association
has warned that the scheme may
force other companies out of
the business.

The' other main objection was
that- tbe two companies were
selected by civil servants . in
secret and no other company
was able to make a competitive
bid. Both CAP and BMDS-are
thought -to have been pressing
the Government for some time
to introduce a scheme to
encourage GPs to use com-
puters.

Mr Kennth Baker, Industry
Minister with responsibility for
. information technology, said he
thought the move would
stimulate .tbe market He
referred to the derision to
support two companies to pro-
vide cheap microcomputers in
schools — Acorn and Research
Machines.

The Dol says only two com-
panies were selected in order to
achieve a u commonality in
equivalent systems." It is seen
as important to ensure that the
effects of computerising differ-
ent types of general practice
can be compared.

Review of
coqjorate
bond rules

By Max WiUdnnm,

THE GOVERNMENT is consid-
ering whether to make ; hi
important ruling on the tax
treatment of corporate bonds,
in the hope of reopening this
method of finance for com-
panies.

It would in volve the.: tax
treatment of any new “low
coupon " bonds. These are
designed to give the investor
a substantial capital gain of
redemption, but a low or zero
rate of interest in tire inter-
vening years. ' -

Although such bonds Jiave
been issued . in the U-S. and
Japan, hone has been issued in
the UK in recent years because
of uncertainty- about how the
capital gain would be taxed.

All the low .coupon bonds at
present being traded in the
market were issued years ago
when interest rates -ware lower.
Any capital gain which an
Investor makes on such a bond
falls into the Capital Gains Tax
net -

'•However; if a new bond were
designed to have a built-in
•capital gain and. a low interest
rate, the Inland Revenue
might rule that the interest
rate was artificaHy ” low and
that the capital gain should"
therefore be -taxed as income^
Such a ruling amid be made
under special provisions tor
dosing tax4val<£ance loopholes.
However, since no such bonds
have been issued by the cor-\
porate sector,' the question has
not been put to the test - •
The Treasury believes this
uncertainty -is unsatisfactory.,
and could .be holding back a
revival of the market which
dried up with the coming of
high interest rates, . .

The - most Hkdy outcome of l -
the Treasury’s present renew
is a declaration that the “capital
gain” on a low coupon bond
should be taxed as if it
interest but no tax wc- '
levied until the investor i
a gain by redeeming the , ::: '.
or selling it

It is thought that under such
rules l ow co upon bonds could
be attractive to gross funds such
as * the assurance - companies
Lombard, Page 2 1

Pitfalls in funding
for State industry

BY" JOHN HJJOTT, INDUSTRIAL EDITOR

PROBLEMS involved in develop- in “creating new and unevon-
mg schemes for the injection of ventional financing instruments
private sector capital into which not only meet the criteria
nationalised industries were laid won but which are also
stressed at a meeting of the marketable.”

National Economic DeveloD- ’ ■

ment Council. . Yesterdays paper listed pro-

A joint report prepared by Jectebe^o»MldBred by Britt*

the Treasury an£ the Nation- SSh-nS? th ?1 tSS
alised Industries Chairmen’s ftSSSSS’ J?? J 4 *.®

Goup said that “ the practical “Ktostry, and by cml

difficulties in the way of devis- SSS?? 1115 eontractOT s for road ;
ing schemes acceptable to all ... _ _ . _ ,

parties are considerable.” ■ . . ® also. said that British Tele-

Many of the difficulties are 2?/ proposed private sector
being raised by the Treasury t0 would be

and were foreshadowed in a ^vestment

round! report last October, ^t- Tt £ Q f D

Since October, all the industries , d Tele-

have been considering whether C0 5 s Wnia:0ce :” :
they could develop -schemes Of be laid

- F down to protect consumers from

monopoly profits, while encou-
raging potential investors.

•: “As a- condition of access to -
niarket finance, British Telecom

Sr JJe.aH imd ,t»; ■

separation of individual pro- -.tinn* *n h*» agroBrt*™ wl
Sects from the overall operations ' to agree4 fOT

parent -For its part, tins Goyera-
corporations, ment -would indicate general

a reas< y ab1 -^ jji^toood.vpoHeies :8 ° d toeir futare ftnanc-
* ■’ W *** ^wriirtake not i» after:
outwei^ any additional finane- the target rate of return down-
mg costs. _ waitfe, except in. certain

: There had also been problems •_ -

pass:

their own that would
Treasury scrutiny.

The difficulties listed in yes-
terday’s report were:

How to avoid explicit or

financial. Times Tuesday. Jtme : 8 . 0.082

I

ail

i

• Tfi

IJ51W8R

To the businessman in a competitive market,
getting the money right is 99% of the battle to
survive and succeed

Not just day-to-day cash flow (although we are
the first to recognise its importance), but also
future financing.

Finance for expansion, experimentation^ or
efficiency.

Finance far'new machinery, transport,
extensions.

Flexible finance.

And. . . because we recognise that we are
operating in a competitive market, that is exactly
what we aim to offer: Flexible finance.

Finance geared to your exact requirements.
m Finance with feed or
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b to ten year periods. '

Above all, finance tailored
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you've made your decision to borrow, y ep wa nfcfo

■;> nb i, • ; r t h t a a j f # r ii K'i t-I • ■ 1 i7; > « >;

means that once we’ve heard your proposftaonwe
won’t keep you waiting for a decision.

We believe, like all serious businessmen that
money matters.

So... we provide money.. ^ when it mathas—
where it matters.

For immediate attention telephone our Area
Commercial Managers.

Af-D.3eanmaat MkDa«*ds&EastAn^a 060246416

P. C-CoDifts West A South Wales 0272211403

J.W.Hmaphrey North afKnrfmtdmtd North Wafa 061 23683S5

K. R-Jenkm London* South East 01 579 2393

C-GModie Scotland &North East England 0312256965

3®8

Jats) ®

match your long-term
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| too, that UDT is an
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You might by now
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But we
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United

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Over 60 years experience

United Dominions Trim Ltd. 61

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May 1982

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(Nitto BosddKabushifd Kmsha}

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The National Commercial Bank (Saudi Arabia) ' The Nikko Securities Co., (Europe) LfcL

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James Capet & Co.

(Stockbrokers)

UK NEWS - LABOUR

Cha

caution plea

inT

Bill

B

it

t

to

in health service

BY BRIAN GROOM, LABOUR STAFF

By hro Dawiay, Labour Staff

LEADERS OF the dertrrrianss^
nninn have urged caution in
opposition to the Government’s
employment legislation. -
Mr Frank Chappie, general
secretary ’of the Electrical and
Plumbing Trades Union, told
his union's indus trial con-
ference in Scarborough yester-
day that the Employment Sec-
retary, Mr Norman TebbJfs
Bfil pmith be beaten “ even
within its own terms.”

He was speaking after EPTTJ
shop stewards from the elec-
tricity supply industry had
voted to oppose the me of any
non-union labour in the Central
Electricity Generating Board
plants, and to enforce the pre-
sent dosed shop system in the
industry.

The employment legislation
outlaws dosed shops where
they are not sanctioned by a
vote of 80 per cent of the
membership.

. . Mr Chappie said that several
erf the clauses of the Bill deal-
ing with the sequestration of
ftmds could be by-passed pos-
sibly if unions re-organised
their funds to make them
jnnui un e to sequestration.

He told the conference that
the- union would wait for the
enactment of the legislation
before deciding its strategy of
opposition.

“ Kt is not sufficient to be
against Government policy.
What we’ve got to know is. what
is to be done to stop it,” he said.

“There is a case, for example,
for bneaking monopolies, but
there ifen^ a case for simply sell-
ing: ofC the profitable parts of
natkKfitlised industries — like
electricity showrooms — then
enmp iaftrin g that the remaining
ports are losing money.”

Ur F"red Franks, nntirmaX
offic er fur the electricity supply
iuJiftliy, said in his keynote
speech that carefnl considera-
tion would have to be given to
the tactics of the campaign, of
q p p o rt Haa,

The greatest danger to the
electricity industry lay in con-
traction of demand, and on the
consequent squeeze on jobs.

Mr Franks also stressed that
concessions <on working prac-
tices and productivity would
have to be made if the union
was to wmfntam political sup-
port. “If we are going to sur-
vive the commercial and politi-
cal difficulties that face us we
must take the consumers with
us We must not jump in feet
first" '

Ea rlier, ■ several delegates *
criticised union negotiators for
t h ei r agreement last month to a •
9 per cent pay rise, for power ,
workers without hol ding a ballot
of the members. }

Ed reply, Mr Franks said the ]
offer had been improved only on j
; condition that there were no
delays in its acceptance. .,

POLICE and troops were on
standby last night in case
health workers foil to maintain
emergency cover during today’s
24-hour strike, expected to be
foe bigegst so far In the six-
week dispute.

Army ww^ieil -personnel,'
including divers, may be used
to keep emergency ambulance
sevices going.

TUC unions aim to maintain
emergency cover in line with
their code of practice, but
police stepped in daring list
Friday's onetfay stoppage when
cover was not provided by
ambulancemen in Ipswich and
Northumbria.

.Yorkshire nhners and other
workers outside the National
Health Service have pledged
sympathy action or picketing to-
day, in defiance of the secon-
dary-picketing provisions of the
1980 Employment Act.

Mr Jade Taylor, president of.

the Yorkshire, miners, said last
night “ Every man fis well aware
of the consequences. No-one
wants to go to prison, but: you
do . things that you believe are
right and you have to accept the
results"

Hie 66,000 Yorkshire pitmen
plan to' picket hospitals," but
promise that picket lines wjQl'be
orderly.. Neither the Govern-
ment nor employers have so far
been writing to take pickets to.
court •

. The general -executive of
Britain’s biggest- union, the
Transport and General Workers
Union, will demonstrate
solidarity by joining a picket
line at Wesbhihstex' Hospital.

Mr Norman ' Fowler, v Social
Services Secretary, is under
some pressure - to increase the
4 to 6.4 per cent pay offers to
Im NHS workers, but today he
may receive a boost from NHS
management.

•' Nurses’ leaders will peress the
management side, at a meeting
of the Nurses and Madwives
proocil, to file
-• Government to increase the 6.4
per oent irifer. The employers,
however,; seem ^ set tofefose.

Mr David WUfiaans. chairman
of “the nurses’ stiff cdfia,

- announced yestwday - that 'ail 1®
organisations had rejected the
offer. -It was foought -.tfet mid-
wives, health visitare and nurse
a dminis trators might have
backed aceptance in line with
the. view 'of fee majority of
their, .members but they sided

- with ; -foe . staff side majority
following .Friday’s 2-1 rejection
by the Royal Oouege a£ Nursing.

.The General and Munktipsl
Workers Union, BritamV ffdrd
largest union, said lest ni#it it
would urge foe TUC to escalate
the health service dispute with
more .“sympathy action.”." by-
powerful groups. '

Union doubts Labour’s poll hopes

BY DAVID GOOOHART AW JOHN LLOYD

FURTHER pessimism over the
Labour Party's chances at the
next General Election has been
voiced by the president of the
130,000 - strong Post Office
Engineering Union.

Mr John Scott Garner, the
POUE president, told his.
union’s annual conference In
Blackpool yesterday: “It is a
luxury that the union cannot
afford for the party to-be a
party of protest."

This friHows a speeda over
thte week-end by Mr Sidney
WeigheiU general secretary' of
the National Union of Railway-
men, predicting that Labour
would lose the next General
Election; and the castigation of
tiie Labour leadership as weak
by Sir John Boyd, general

secretary of the Amalgamated
Union of Engineering Workers,
m. his union journal last month.

However, union leaders are
not expected to press for a
change in the party leadership
in the near future. -

Mr Scott Garner told his con-
ference that: "It is not in the
interests of tbe POEU to be
affiliated to a party which
cannot become the Govern-
ment”

“ Policy is hot everything. It
is what the pubtie perceives of
the Party as a whole, and what
the public sees is a party
deeply riven about ins constitu-
tion, its policies and its
leaders.” .

Mir Brian Stanley, the union’s
general secretary, underscored

the point in a speech to foe
union’s political fund manage-
ment committee. Hesaid trade
unionists most spearhead a last
dStcfc revitafisatkm of the
Labour Party.

“ We have only a few months
left to dean out the stables and
present a united im age to the
pobHc.” .-

Despite its . doubts — or per-
haps because of' them— the
union has increased its party
affiliation from 78,000 to 90,000,
and its party delegation from 13
to. 15. .

'Senior union leaders are pri-
vately concerned by the signs
of: drift within the party, and
by the run of losses in recent
by-elections. '

Right keeps control of post workers

BY DAVID GOODHART, LABOUR STAFF

TUC wants cut
in payments to
pension funds

THE BIGHT WING remained
firmly in control after die first
round of national executive
elections at the - Post Office
Engineering Union’s annual
conference in Blackpool yester-
day.

The NEC of the politically
divided union remains split 140
in the right’s favour after the
regional elections.

■ ■ 'The left has been marking
time after gaining considerable
ground in 1980, but hopes to
make further grins in today’s
elections.

Mr John Golding, a POEU-
sponsored MP who backs the
right, said: “The POEU has long
supported moderate leaders and
policies in the Labour Party
and it would make a great dif-
ference to toe party if the broad
left did take over the union.”

Sr George Jefferson, chair-

man of British Telecom, faced
a widk-out by 100 of the 700
delegates when be addressed the
conference.

He said BT mist accept a
partnership with Project Mer-
cury, the private telephone net-
work, planned to start opera-
tions next year. He also re-
iterated for major savings over
the next three years. _ .

..But Mr

general^secretary/ ' . We

Want a thriving BT.but not at
the expense of good' pay or Job
security.-” He rise said the
union would not accept compul-
sory retirement at 60. ;

He added that every avenue,
of negotiation . . and. persuasion
would be used to minimise the
effect of privatisation in BT.
The broad left in the union is
pushing for industrial action, to
stop Mercury.

j Mr Russell Tuck, assistant

general secretary of the National
Union. of RaHwaymen and a
Labour Party NEC member,
told delegates that a future
Labour Government would
nationalise Mercury. But he
emphasised, that it was neces-
sary to pay compensation.

- • Delegates also backed - a
. mptioji urging BT to start an
aggr^sjve ;marteting campaign
■to. .win business i±u aH : utea§ of
communications. On moderni-
sation in BT delegates rejected
a ■ motion calling for non-
co-operation. •

The conference agreed' -to
affiliate to CNB. lt also backed
: a caU for interpai; union reform.

■ urging - - greater' power . ; . at
regional and area level, to
reflect the devolution of power
within BT. A special conference
will be heW on reorganisation.

By Eric Short

Nalgo to discuss pay talks breakdown

TRADE UNION negotiators are
-being advised by the TUC to
seek a cut in their members’
contributions to company pen-
sion schemes to offset the
forthcomang increase in
National Insurance contribu-
tions.

The latest TUC Occupational
Pensions Bulletin points out
J that, from next April the reduo
turn in tbe employees’ NI con-
tribution for schemes that have
contracted oat of tire State
eaxnings-related scheme falls
from 2J5 per cent to 2J5 per
cent of earnings. When tax
refief is taken into account, this
represents an extra payment of
0.5 per cent of earrings.

BY JOHN LLOYD, LABOUR EDITOR

PAY NEGOTIATIONS for
500,000 white collar workers in
local government have broken
down over the issue of the
representation of chief and
deputy chief officers. •

Delegates to the union's con-
ference next week are to' discuss
possible steps in response. The
stops could involve -industrial
action.

During the talks, which ended
late on Friday night, the local
authority employers refnsed f to
include the senior officers
because they said no agreement
had been reached on setting up
a new negotiating body for

-them. The,. officers had previ-
ously been included ip .the
agreement covering local autho-
rities ‘adminwtrative, profes-
sional, technical and. clerical
staff. :

Nalgo. said yesterday that
“ the delay in the establishment
of a negotiating body rests
entirely tyiitii the recently-
formed and' . totally inexperi-
enced Federation of : Profes-
sional. Officers' / Associations,
which is - seeking: to _ exclude
Nalgo, a union with thousands
of chief and deputy ' chief
officers within its membership-"

Nalgo also said that the em-

ployers were “ actively seeking
to, reduce the range of salary
scales for -the lower paid.” Mr
Mike Bfick, 'chairman of Naigo’s
local government . committee,
said yesterday: “Trade unions
are about unity, and that, rarity
embraces everyone* no mattec.
how senior or junior he or she
may be.*? • • • . • ‘ j.

In earlier ' , talks, the . local
authorities had offered '5 -pier
cent' rises, linked.to a - restruc-
turing, (tf grades anda rednritufo
; of doe hour for the- minority erf
members wadting a 4Qhour
■week. The offer had .been
rejected by the. union. 1:

British Airways cabin staff to reject shift pattern

BY BRIAN GROOM, LABOUR STAFF

BRITISH AIRWAYS cabin staff
will today refuse to work a
recentiy-introduced shift pattern
winch they say is dangerous
to their health and po tentially
hazardous to passengers.

Leaders of the British Airfine
Stewards and Stewardesses
Association were last ni ght *
meeting management to per- .
soade it to cancel .foe system
and avert a dash.

Cabin staff say jet-iag stress
is brought on by mating flights
between Britain and the UB.
winch involve four time-changes
on successive days.

Th e aSrEne has agreed to
withdraw the shift s ys tem on
foe. -Los Angeles and San
Francisco routes but the asso-
ciation wants it. dropped on
Miami and Barbados routes, too.

The cabin staffs* decision to
stop working . foe system wi^
taken at a- meeting yesterday..

"The association says- more
than 24 reports of cabin -crew
being taken ill in flight because
of jet-lag have been made

~ + UMUC.

Seven were reported in op a
-flight from London to -Lo's''
Angeles and were given oxygen.
Under , the • previous system
cabin • crew ■ -made. -on® • trip

-Across the Atlantic and one trap
IrackrfoBowed by three days off.

I2ie “backto-bacfc ” System
vras introduced in February. It
involves flying to foe UiL,
returtong'the nert day and
.-repeatnig .foe operation . im-
mediately.' • ,

• 2he association accepted It
at fir st as part, of .foe airiine's-
' survival plan but now' saya foe
health risks are too great!

y.. •

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Financial: Times Tuesday June 8. isfcw

13

UK NEWS

Where inflation now exceeds the pace of life

DURING THE ’second teif. of
the 1960s the Scilly Isles; used
to crop up in tte cewB every
now and then, when
Wilson, who wias then .Prime
Minister, " took bis fioEdays at
has bungalow an St Mary's, toe
mafn island, and the occasfional
photograph of him accompanied
by has wife, bis dog Paddy, and
sundry detectives would make
its way into the papers^.-.

When Mr - Wilson "(who
became Sir Harold in 1976) left
office in 1670 the papers were
no longer so interested to the
holidays of a former premier
and the islands slipped back
into relative obscurity, only to
emerge briefly when he
.returned to No 10- Downing
Street in 1974.

On the surface the islands
remain a holiday paradise. Only
five of the- .200 islands are
inhabited, of which Sit Mary’s
is .by far the largest with 1,959
of toe 2,426 people. The- Gulf
Stream laps the shores, the
beaches are dean and sandy
and the pace of life is jflea-
santly slow. .

However; there are under-
lying tensions. Inflation: iras
played havoc with the economy.
Sharp rises in transport costs
have severely dented the holi-
day' trade, ■ the. single most
important source of income and
employment, and the 100,000
visitors -a year, doubling the
population at any one time, are
not sufficient to sustain econo-
mic growth.

The -other main source of
income, the horti cultural indus-
try, wiith its emphasis on early
flowers, especially daffodils, and
vegetables such as potatoes, has
been Badly hit by imports from

Anthony Moreton looks at the economic problems of the Scilly Isles

southern Europe and’ Israel
Flowers from these sources are
’ now cheeper . in ; the London
markets _ than the

: ScrUies can supply. .

Xdst year freight rates rose 1
'by sto«it 50 per cent and this
has . pushed the cost of living. .
waJJ above that. •oo. the .main-
. land. Petrol, #b r . Instance, is
now more than £2 'a gdihin. -
Pfsrturbedatdie deteriorating :
economic situation, the Batchy
ofCorowall —.which owns the
islands with (he exception of.
Hugh Town, the capital and *
number of. freeholds. — has'

■ called in Graham * Moss . Asso-
ciates to undertake. & community
project which wail plot the
islands' long-term ftjfeite in"
social, economic and environ-
mezbtal terms. -

Tbecsne obvious answer — to
bring in more industry, a policy
which -• is being pursued - id
Guernsey, the Isle of Tj&m and,
to a lesser extent, in Jersey —
may not be the ..obvious solu-
tion: More industrialisation
could create more stress, bot
less. A building programme ol-
factories and houses would prob-
aWy to an undermining of-
the conditions boost holiday-
makers seek.

' The consultants are therefore
taking soundings from a wide
■variety of interests off ■ toe
islands as well as on them,
including the Development
Commission, the Council for
Small Industries in Rural Areas,
-the English Tourist Board and
the Nature Conservancy

or iiiDv’c

_ . TolWraM* —

mw. . • StAgl

Around Britain
The Scilly Isles

GpunciL

'They have already begun
Work arid hope to be able to put
their report to the islanders by
next spring.

Graham Moss Associates have
had a lot of experience of plot-
ting a course for rural com-
munities. They have undertaken
work -in Turkey and France as
wen as several projects in the
north of Scotland, including
one for the Western Isles from
which parallels for the ScilUes
can be drawn.

The most recent, and in some
ways the most interesting, was
a project for Trent — three
declining rural communities in
Dorset between Yeovil and
Sherborne.

Trent is largely owned by the
Errfest Cook Trust, part of the
Thomas Cook organisation. The

school -was under threat of
closure, the bus connecting the
main village to the nearest
towns bad been cut baric to one
a week, and the population was
predominantly in the older age
brackets. ;

Moss prepared a. programme
whch they called a “catalyst
for action ” that suggested new
housing, some industry and a
rationalisation of land uses.
According, to Mr Graham Moss,
head of toe consultancy, “we
breathed new life into the
village and enabled it to become
a working community again."

That is what he hopes to be
able to do for toe Scillies. One
.of the main -problems will be
to tackle the problem ol freight
costs.

One course will be to attempt
to get the isles accorded less-

favoured designation waterin' the
EEC. This would allow for the
differences between actual
transport charges and the
(lower) road charge for the
equivalent distance to be met
out of public sources.

The Scillies hove already
failed once to get support on
this ground but,, since toe
Western Isles are assisted. Moss
feels that a further appeal made
within the context of a wide-
ranging community report
might have more success-

The other tyibbti aim will be to
improve the infrastructure.
Previous attempts to improve
economic life have foundered
on constraints to toe supply
of water and electricity. If
something could be done in tods
area it would be a big step
forward.

Mr Moss is well aware that
any suggestions his consultancy
might make must carry the
islanders. Many, perhaps most,
of the islanders prefer their
isolation and their way of life
but oven toe majority does not
want to see its standards
continually eroded.

Any proposals must therefore
be put forward with diplomacy
and presented at every stage to
the islanders to secure their
co-operation. Mr Moss has had
a lot of experience in this
delicate task and is convinced
he can suggest a programme
that will give more substance
to the long-term future of toe
Islands without alienating its
people.

APPOINTMENTS

Changes at Barclays B ank International

Mr Gervasc Buxton: has been
seconded by Barclays Merchant
Bank ■ to BARCLAYS'- BANK
INTERNATIONAL as an inter-
national finance director, inter-
national finance division at the
bank’s head office in London.
Mr Anthony Archdeacon has
been appointed assistant general
manager at Barclays Bank Inters
national's planning department,
head office: Mr Derek Wall, a
general managers' assistant,
regional general manager's
office. Africa at Barclay’s Bank-
International’s head office .■! in
London, has been appointed local
director in Cyprus from July. .

★ ■ ■

MORGAN GUARANTY TRUST-
has appointed Mr _ James L
Berliner a vice president and :
head of a. newly formed, energy -,
and minerals . department . with

regional responsibility far co-
ordination of energy and
min erals financing in Europe,
Africa and the Middle East. Mr
Berliner has succeeded Mr Peter
L. Woieke and will be based in
London.: Mr Berliner has headed
the project finance department in
Morgan's industries group since
its formation in 1876.

*

Mr Robert 2L G Taylor to Its
board. Mr Taylor is group manag-
ing director of Robert Taylor
Ironfounders (Holdings).

★

Mr D. G. Burnham has been
appointed a director of THE
RENWICK GROUP.

*

Mr P. H. Chilton has been
appointed marine underwriter
for SPHERE DRAKE (UNDER-
WRITING}. Mr Chilton succeeds
lr R. J, Bromley who has
retired. Mr D. B. Newsome
becomes 1 denaty marine under-
writer. Mr Martin J. Read has
been piade director of under-
writing services. *

FIFE INDMAR has appointed

Mr. Michael Frost has been
appointed manager of tbe
Mlnories branch of LLOYDS
BANK He succeeds Mr. Barry
Taylor who becomes an assistant
regional general manager at the
Bank's City of London regional
head office. Mr Frost was
account manager at Lloyds Bank
International.

*

Mr Michael Whiteman has
been appointed marketing direc-
tor of MEL. UK defence division

of Philips Electronics; from
July 1. He is divisional market-
ing manager of the Bracknell
division of Ferranti Computer
Systems.

•k

Mr Robert Holmes a Court has
been appointed chairman of
BRYANST0N INSURANCE. Mr
Derek Williams becomes deputy
chairman. Mr W. Bert Reuter
and Mr Anthony Pinkett have
been appointed directors.

*

Mr David White has been
appointed the first sales director
of ANCHOR HOTELS &
TAVERNS part of the newly-
formed Imperial Hotels & Cater-
ing.

*

Mr Derek Munt has been
appointed dir ector and general
manager of FERRYJtASTERS,

fa 1

Mr Derek Blunt

responsible for the group's
overall UK activities. The com-
pany is pan of P & O European
Transport Services.

MARINE ELECTRONICS

• INMARSAT Ship Earth Station

• Radio Transmitters & Receivers

• Radiotelephones

• Radars/Collision Avoidance System

• Navigational Instruments

• Facsimile Receivers

• Fishing Electronics Equipment

LAND-USE COMMUNICATION SYSTEMS

• Domestic/Regional Satellite Small Earth Station

• Radio Communications Systems

• Coast Stations

•Automatic Mobile/Rural Telephone Systems
•Telemetry & Telecontrol Systems

• Simulators (Air Traffic Control & Marine Bridge)

JRCJ flopon Radio Co., Hd.

Since 1915

MAM OFFICE: Mori Building Firth. 17-1. Toranomon l-chome, Mmato-ku. Tokyo 105. Japan
Cable Address: ‘JAPAN RADIO TOKYO* Phone: (03)591-3451 Telex: 0222-3068

UK RE PRE SE NTATIVE OFFICE: N.KobBvashi. 3rd Floor, Tempta Chambers. Temple Avenue. London EC. 4 Phone: 01-353-7960
Telex: 885629 JAPRAD G

USA LIAISON OFFICE: T. Hayashi, 130 Easl 561 n Slreet. New York, New York 10022 Phone: 212-355-1180
Telex: 230-C45636 JAPAN RADIO NYK

jakdotfi

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From this IMI SANTON
heater to larger storage units
operating on low-cost night-rate
electria^fomsprayhai^-w^sh
uralstohand driere» we can show
you a completerange of no-fuss
electric equipment-all specifi-
cally designed to be simple and
economical

Isn't that what you want for
your washroom?

If you'd like more information
ring us on Freefone 2284.

Alternatively drop in at The
BuMElectric Bureau,Tlie Build-
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WCH contact your Electaiaty
Board; oirfillinthe coupon

For details about the wide range of electric water
heaving systems, send this coupon to The Build
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TECHNOLOGY

EDITED BY ALAN CANE!

Razor blade story should
be the Philips message

news

A SUBJECT which keeps crop-
ping up in the video business
at present is razor blades, it
is inspired by the dramatic
.SelectaVision video disc player
(down to below 5250) . partly
made possible by disc sales
.nearly treble those originally
expected.

This has led to the razor
fclade stories, repeated now on
both sides of the Atlantic: give
the razors away and make
money from the sales of the
blades.

r The assumption is, of course,
that most people know what a
razor is for and what are its
benefits. Regrettably, in the
case of video disc technology,
ignorance is of appalling pro-
portions.

' Last week, nine days after
the UK launch of the Philips
LaserVision video disc player,
t set forth to discover how well
the sales staff were doing in
some of the few stores currently
stocking the player. It was a
depressing experience, and
Philips should immediately
order 100 copies of that old
but excellent Rank training film
called Sellinq Benefits.

Our of more than 30 video
shops in Tottenham Court Road
a mere three are supposed to
Stock LaserVi'Aon players — but
only one wijdow display is
visible. In fie John Lewis
department /ore " in Oxford
Street, the LaserVision player

is plugged inio a Crundig
sirren TV receiver — but 'he
shep assistant failed to mention
to me one of rhe more import-
ant advantages over current
video recorders, high quality
replay.

Si John Lewis's do nm
se-l nden discs, it was also
irT««s : blr for me to sample
the only fhing that might per-
si'.'dc me to buy n player — ihe
programmes.

The man in Greens at Deben-
h_am« also failed to mention
stereo. He also omitted to men-
tion that discs can carry- extra
Lhfn-matinn as teletext pages
— v.hinh is just as well because
his player was not connected to
a ieiciexl receiver. He also
m-'dc the ex inordinary state-
ment that the “ other two video
di«c systems, not yet available
in the UK. can play conven-
# io-?l gramophone records

ton."

T^.EW did much bolter,
al’ hough only had 53 disc
J’ecvoc in ihe rack. and nor
"il of these were available. At
a simp in Brighton, a colleague
tern ted only 1 6 sleeves.

So much for selling razor
Hade-. Unfortunately. the
Philips launch catalogue of 121

By JOHN CAIXTOCK

titles (of which possibly only
70 are currently available)
again fails to stress the unique
benefits of the video disc— -86
are feature films and only 18
make use of the single framing,
interactive facilities of the
player.

Pessimism about the video is
easy to find; not only because
of this failure to exploit its
unique qualities, but also
because sales in rbe U.S. and
Japan have been very dis-
appointing. Yet the root of the
problem is in programmes,
because only with the right
material will the public have a
chance to gTasp why video discs
have benefits not offered by-
VCRs. No salesman to whom I
put the question “why disc
rather than a video recorder"
could offer a convincing answer.

It Increasingly looks as if
only THORN EMI will provide
this answer. Despite the delay
in the launch of the JVC VHD
disc system — to which THORN
EMI is committed — the com-
pany is pursuing a seven figure
development project in making
programmes uniquely tailored
to the benefits of the video disc.

Quality is the lell motif,
reflected by the creative talents
assembled — led by ex-television
producer Peter Morley. whose
past achievements included rhe
outstanding series on the life
and times of Lord Mountbatten.

Quality

Last week, my flagging spirits
were boosted by a sneak
preview of sonfe of THORN
EMI’s programmes now in their
impressive cutting rooms. Thus,
the extraordinary motor car
maintenance manual — a visual
“hook'* of 100 chapters and
sub-headings. These go into
extensive visual detail — such as
The Electrical System (13 sec-
tions ranging from the battery,
the distributor. the coil,
through to bulb replacement).

What is so important about
the samples I viewed is quality
-—quality of photography, of
sound, of style, of conception,
and of content. With many shot
in 35mm film, by leading
cameramen, it is refreshing t»
see instructional material .
which actually uses 'photo-

graphy to show things better
than' the eye could possibly see
them.

On discs, this technical qual-
ity Is supported by. superb stereo
sound where relevant. No
video recorder can match these
experiences. But more important
is the quality of concept where-
by the user can not only control
access to any part of the
programme — as' still pictures,
repeat motion, etc. even choice
of alternative sound tracks — but
where the programmes them-
selves are intelligently designed
to make full use of these facili-
ties.

‘ In the U.S., a few others are
blazing such trails — such as
the now famous ffidisr for child-
ren which is a compendium, of
games and tricks for young
viewers, including how to make
paper aeroplanes, interactive
games, puzzles, etc.

For more specialist uses,
American discs have included
various medical- and diagnostic
programmes, even The Puzzle
of the Tacoma Narrows Bridge
Collapse (for physics and eng-
ineering students) — surpris-
ingly a best seller. -
New idea& are also being
explored, like the. legal course
based on computerdom rolled
video discs where the law stu-
dent plays the role of opposing
counsel, raising points or objec.
tions (via *he keypad) wherever
he considers appropriate, at
which the disc advances to the
judge's “ live ” response. The
same ideas could be extended '
to very popular consumer inter-
ests such as playing snooker,
.chess, even becoming a musician
in a pop group.

The video disc really is a
completely new medium, on
which pot only picture and
sound quality offer great scope
for music, ballet and opera but
where a totally new grammar
is under development. It brings
to moving pictures the accessi-
bility of the book, the page and
the paragraph without the
imposition of a syntax; and it
offers the printed and spoken'
word the availability of moving
pictures without the tyranny of
a beginning, middle and end.

THORN EMI and JVC apart,
it almost seems as If the video
disc is too important to be left
to the manufacturers. They are
besotted with past cultures
Instead of the discovery of new
ones. It would be a tragedy if
this important medium failed
now due to dyslexia. What
chance for the book if Guten-
berg had been - illiterate.
.Chancer. deaf and .Shakespeare I .
dumb? •

IN THE wake of the Versailles
Western summit. DAVID
WHITE in Paris reports on the
“Laundromat," claimed by the
French, lo be the fastest “fax."
It whizzed information between
Versailles Le Monde ■ in the
capital and the FT in London.

For the past week a voluminous
box has been silting in the FT
office In Paris. Resembling a
rather cumbersome photo-
copier, its ephemeral purpose
was . to whizz facsimile
messages in a matter of
seconds direct from the
Western Summit meeting in
Versailles;

Instantly -christened “The
Laundromat," the machine is
a prototype of the CTT-Alcatel
5500, claimed to be the fastest
“ fax ” yet produced. ■

The manufacturers bad to get
the Post Office to instal special
high-capacity lines — one to the
FT, the other to Lc Monde—
in order to link us up with
the press room at the
Orangerie in Versailles, where,
in the place of orange trees.
France's latest electronic
hardware has been on
prominent display.

No expenses were spared in
putting together this shop-
window — the first specially-
tailored system of its kind
seen at a Summit It shows,
if -nothing else, the continued
degree of French political
determination in the field of
*‘ telematics " — their own
coinage* for all the bits of
technology where data pro-
cessing. t dec am muni ratio ns
•and television overlap.

Under the Giscard adminis-
tration, the PTT Ministry's
big - spending Direction
G6n£rale des T616communi-
catdons was often criticised
for acting like a state within
a state.

Directory

But the present Government has
kept on every one of its
ambitious projects — -with the
sole nuance that it has
insisted, on consulting users
before pressing ahead with
schemes like the electronic
telephone directory, now on
trial in Brittany.

Everything was brought into
play for the 3 ,000 -odd
journalists and delegates at
Versailles. As long as they j
could understand the operat- ;
ing handbook, they could play i
with video terminals to send .j
messages to each other, find i
out about the weather, or <
about where to go at night,
or about Japanese agriculture i
or test their knowledge _of t
France in an electronic game. t

President Reagan looks over bis shoulder at a session of the Versailles suimmil: unaware that
the latest French technology was relaying information at high speed to leading newspapers in

the UK and France

Alongside standard communi-
cations facilities and closed-
circuit news broadcasts at the
35 " message points ” installed
for the Summit, both of
France's two videotex systems
were available: Antiape, which
uses the television network,
and the “ interactive "
Teletel system, which uses
the telephone network.

The services offered on T616tel
included a bilingual data bank
of facts and figures and a
“letter box" fatality for
which everybody had to be
allotted a special access code.
As a final piece of techno-
* logical exhibitionism, delega-
tions were issued with “ magic
pads" on which they and
their respective leaders could
scribble , automatically-trans-

mitted confidential notes to
each other. "

The French are anxious to
show they have been able to
make up ground even in areas
where they were initially slow
to cash on. Facsimile trans-
mission is a prime example.

The 5500 telecopier — .unlike
the other gadgetry on show,
not yet commercially avail-
able, is claimed to be well
ahead, of the main Japanese
rivals. Using a microproces-
sor, it “ reads ” a page in
about three seconds, takes
25-29 seconds to send it and
prints out in three seconds,
on ordinary paper: a different
concept from current
machines which transmit line
by line. _ . .

The system is due to be in-
stalled in a public “Transfax"

How to beat corrosion in oxygen removal

BETZ of Winsford, Cheshire, has
introduced Cor-Trol 778. a treat-
ment for the removal of oxygen
in in3us trial water which is
necessary to inhibit metal
corrosion.

The system, it is claimed, can
reduce iron to a magnetic state
thus malting its removal from
process lines much easier.

Cor-Trol is an aqueous blend
of an organic oxygen scavenging
material and neutralising amine :

It is a volatile scavenger and
does not contribute to water
solids which can damage boilers,
heat exchangers and econ-
omisers.

Betz says that . previously
treatments have been sulphite-

or hydrazine-based. The former
is a solid which contributes
to dissolved solids while the
latter is dangerous to . handle
The treatment has been used
successfully in the. U.S. and'
Canada, but complete informa-
tion is available from Betz,. Nat
Lane, Winsford, -Cheshire (660
65 3477).

lliegoodnevssiS

FERRAMl

Selling technofogv

O O-- .

network In French post offices
and will he able 7 to transmit
via the country’s Telecom
satellite when this comes Into
operation next year.’ CIT-
Alcatel plans to market the
machines through the network
of its UK-based Roneo subsi-
diary.

High-volume “fax" -' trans-
■ mission has Its' "price — about
£13.000 per'- machine, seven
times the cast of some basic
slower telecopiers. But" the
company hopes' to sell it to
big companies and banks.
“It’s a slow market, 1 ' a C1T-
Alcatef executive admits.
“You have to really believe
- in it to go ahead.”

AS FOR THE ONE AT THEFT.
THEY ARE COMING TO
TAKE IT AWAY AGAIN. -

iTil Wfs

k 1

“MOVING THE Mylar" ft the
name of the game among U.S.
software houses ." now, and
mylar salesmen are looking, for
the product' whiefi will make
their .fortune. 1

Mylar is, of couree, the thin
flexible plastic used as the. base
in cassette * tapes. In software
terms,. it means selling .snail,
specialised programs for micro-
computers in thousands.

Perhaps the best example is
Vlsicalc, "a 'piece of software
for solving business problems
of the “ what if " . jrarieJy —
income statements, cashflow
statements and other., reports
are aH possible*.

Visicah* brought success to
Apple, the . microcomputer- for
which it was initially designed,
and simultaneously spawned a
host of Visicalc look-alikes, <■-.

Compansoa - - . .

Now Comshare, the large
North American computer
bureau specialising in financial
modellings aims to move more
Mylar than most with its.Visi-
catc look alike. Piannercalc.

.Its secret? Price. Mr Ian
McNaught-Davis. Comshare UK
md. intends to sell the package
at. between £35 and .£40,

By comparison, Visicalc and
its look-alikes sell in the £150
region.

: Mr McNaught-Davis is clearly

mackerels. Next up from
Piannercalc is Master Planner
and then there is Target
Options, all -at rock-bottom
prices (compared with conven-
tional software). At the top, of
the game, there is still Corn-
share with its massed Sistna
computers and well developed
financial software to tackle the
big business problems.

Piannercalc runs , on • any
CP/M based 8-bit machine.
Comshare will teH you more on
01 J 222 5665, -

• ALAN CANE

New Issue

This announcement appears as a matter of record only. " ’

JunelS82' '

1981-Year of transition
at Solvay&Cie.

: i .

1982- Encouraging
prospects.

The diagnostic

The economic crisis continues to rage and the European
chemical industry finds itself confronted with its greatest
problem : manufacturing overcapacity in the face of stagnating
or even tailing demand tot certain basic products. While
inorganic compounds, chemical specialities and medicines •
continue to move ahead at a satisfactory pace, organic agents
and, in particular, plastics are suffering setbacks.

The remedies exist

The implementation of the energy savings prog ram me first set
up in 1973 was actively pursueain 1981. Rationalisation efforts
were intensified in the troubled sectors, particulary in plastics,
which are responsible tor the unsatisfactory results of the
Group. Production capacity and staff numbers have been
adjusted to a state of slower growth and certain activities,
whose future profitability cannot be assured, have been
abandoned. In addition, marketing was accelerated of more -
complex and specialized products, aimed at less mass-manu-
facture and more added value: Moreover, rationalisation and
adjustment of ihe Group's organisation to the new require-
ments is well underway, e.g. unifying the management of the ’’
German subsidiaries, creating a central management for
human health and integrating the subsidiaries involved in
animal health and fine chemistry. All this will reduce operating .
costs. Il is obvious that a change of thisscope, affecting both
men and products, can only succeed through progressive -
reorientation, spread out over several years and pursued with
vigour and constancy.

Policy strategy

To guarantee the success of this change, Sofvay & Cie holds a
major trump: its strong position in thearea of technology/
Thachemeal industry is surging forward and we will not be left
behind. We are innovating in every sector where we areactive,
both old and new. We will maintain our lead, occupy the
positions of the future a nd furnish aur undertakings with
scientifically advanced products.

Key figures

tn minions of BF
Sales

Research enpendiiure

Field of action

Today, Solvay & Cie has.men, projects, advanced tools and
reserves which can be made available everywhere in the world.
The field of action is vast: novel processes for manufacturing
traditional products, development of the uses of hydrogen
peroxide and its derivatives, better performing medicines,
lechnopolymecs.the use of biotechnology... Progress is
decidedly,encouraging.

The impact of the crisis
on profits

The results of the Parent Company, which are less affected by
the deterioration of the plastics market than those of the Group,
are positive. The Board of Directors win propose to the General
Meeting a dividend of 1 50 BF per fully paid-up share, a step
backwards compared to the preceding year. But it is quite
dear that 1 981 was a step along the path of adjustment to the
new economic environment: there are excellent reasons for
befleving that the measures which Sofvay & Cie has taken In
order to resist the recession will succeed:

Capital expenditure

Group's net resull
Net rasuft of Solvav & Cie

The Strtev* Oe annual regM can be obtained 5r
Duftft aw Oemdfl on recRK-fftryn fre
Jecnxanji Genera/ dSohtav A Oa

fiuedi Praca Aten 33. B-iosn

mm

m

Tokyo, Japan

DM 30,000,000

- Private Placement s

\ ■ ■ v

r/..

Bayerische Landesbank
Girozentrale

The Nikko Securities Co,
(Europe) Ltd. I

Al-Mal Group

Bayerische Landesbank
Internationals A •

DaMcjhi Kangyo
International LtcL

■* . • '.V*

BASE LENDING RATES

A.B.N. Bank 13 %

Allied Irish Bank. 13 %

American Express Bk. 13 %

Amro Bank : 13 %

Henry Ansbacher 13 %

Arbuthnnt Latham ... 13. %
Associates Cap. Corp; IS- %
Banco de ’Bilbao 1 -..:. 13 %

BCCI 13 %

Bank HapoaJim BM ...13^%
Bank of Ireland ....:. 13 %.
Bank Leumi (UK) pic 13 %

Bank of Cyprus 13 %

Bank Street Sec, Ltd. 14 %

Robert Fraser „ 14 %

Grindlays Bank *13 %

■ Guinness Mahon 13 %

■ Hamhros Bank 13 %

Heritage & Gen. Trust 13 %

■ Hill Samuel S13 %

C. Hoare & Co tI3 %

_ Hongkong £ Shanghai 13 %
Kingsnorth Trust Ltd. 14 %
Knowpley & Co. Ltd.:.. 13***
Lloyds Bank 13 tt

, MaJlinhal! Limited ... 13 ;%
Edward Manson & Co. 14 %.

Bank Street Sec, Ltd. 14 % Midland Bank ..: 13 %

Bank of N.S.W 13 % ■ Samuel Montagu 13 %

Banque Beige Ltd. ... 13 % ■ Morgan Grenfell 13

Banque du Rhone et de National Westminster 13 %

Bahque du Rhone et de

la Tamise SA. 13

Barclays Bank 13

Beneficial Trust Ltd. . % . 14 %
B remar Holdings Ltd. 14 $
Brit. Bank of Mid. East 13 %

■ Brown Shipley 13- %

Canada Perm't Trust... 13*%.
CasUe Court Trust Ltd. 13]%
Cavendish G'ty Tsi Ltd. 14 %

Cayzer Ltd. J3.%

Cedar Holdings 13 %

■ Charterhouse Japhet 23 %.

Choulartpns 13 %

Citibank Savings Sl2}%

Norwich General Trust 13 «

• P. S- Refson & Co- 13 %

Roxburgh? Guarantee 13*%

E. S. Schwab 13.%

Slavenburg's Bank 13 nr

Standard Chartered ...j|i3 % n
Trade Dev. Bank .... 13 tv
Trustee Savings Bank 13 %

TSB Ltd. 13 «

United Bank of Kuwait 13 %
Whiteaway Laldlaw ... 134%

Williams & Glyn's 13 %

‘^intrust Secs. Ltd. ... 13 %
Yorkshire Bank 13 %

(Hpldin^s) pic.

. • urspensWatrf^ Opticians .- .

" ' Diners and Man^turersofOphlhsImtc, Medical, - >
-SurQjical and Aircraft insthimwts and equiptnsnL - ' j

Mr. J. H. Clarke, (^irrtiah aind Mariagiiig-:-

Dii*ec^vTfipqrt5^i981t l - -'••• W*

Clydesdale* Bank 1S;% ■ Membats Of rha Accepting Ho u gijB

C. E., Coales J J4 %. . Commniaa.

Comui Bk of Near East 13 .% . If**., . 10 ’-- 1 -month

Consolidated Credits... IS' % fi orx tflrm c ?' 000 ^2

SSSsSTbS* t d. raiB « und „

Duncan. Lawrie 13 % . nh%.

Eagil-Trust .: 13 % fCaif dopuhs cum md.ovar

E.T. Trust 13 % -1W:.

Exeter Trust Ltd 14 ■% B ZJ-day d«po«iu ow*r n.000 ltvst-.

First NaL Fin. Corp.... 15J% § DBmand-oapoart* i0i«%i-
First Nat. Secs. Lt<L.~ 15i% V Mortaaqo baaa race.

Comm n tea.

* 7.-day deposits 10%. 1 -month

JO-25%. Short term £8,000/12
month 12 . 6 %.

t "7-day deposits on sums ol; under
. £10.000 -im.%, £10,000 up to

. ESaOOQ 11%, £50,000 and over
11*1%.

• Final I>iytrIeo,1 15%'makW 32.03%

, ( ISftfO: KM’\, ) tor the year- ... .= >

• Kanungs pen shm;ii'iiTip(19?0: Pi:3%).

O F.vri'n^'.Cnlfth i? mi>'i a,

; Otteof caution, t ak m** -i iiit.6‘aucp u iit the ,

3n Q^ase. m X.ILS: to the

7 pui ? Iiyi h >rn A j iri] is t.iimV-jS] 1 utc lit .

: poJihcaE situatioji'‘Tfie fnattfomen trsectoi, >
' . ^^ore buoy ; ant.:and:^vec^ esjwct aiirr " > *
Uici-e^spd'cash flq iv when rfiWfiiiaf v ?7

■ H » ) i

agreed later this^eaii.

15

•Etondai Times . Tuesday June: 8 1982

BBC 1

TELEVISION

6.40-7.55 :snt; Udiyersity;
(Ultra. High Freqoency - only). ■
9JJ5-U137 .For School Colleges.
1LW News ; After Noon. -11.55
The .Visit. ot .Fxetadent Beagani
Preddent; Reagan's . address 1 4o
Farftaroent : Q7 pm Regional
News.. for ^Eiigiaod (excefctLon-
don) •'London, -ana SE : only:
Financial Report; News': Head-
lines. 130-145 ■'Qte Elmnps. 240
You - . and/" ; Mfe. v j2j£&5S
For 1 Schocflfi/CoUegtei: -<£20 Pobol
Y Gwm. 3-53 Regional News for
England (except London). 155
Hay School. 4L2Q The AH New
Popeye Show. 140. /The : Record
Breakers. 1 5 j 05 John- Craven's
NewsrOond 5J.Q Take Two.

,5.40 News.

. 6.00 Regional ' News - Maga- ;
zines. .

&25 Nationwide. . " !

040 Ice Skating: St Ivel Gala
of World Qtainpioas,

7.15 Triangle. :

740 Lena, v 'starring.. ‘ Lena
. ZavaibuL

8.10 So Yon Think You Know
Youx Rights? j

9.00 News,

945 The Visit of Prekdest
Rea g an: Banquet given, by
The Queen in honour 'of
President Reagan.

1045 Wogan.

1058 News HeadUnes. .

1L00 Harry O, starring David
Janssen. . . -

Gltfis Dunkley : Tonight’s Choice

There are^ worthwhile programmes on Radio 3 and Radio 4,
but as r the longest day - approach es so television takes on its
fflimliargtm^ repeats and -obscure movies, and a

decided lack' of' fresh drama series, drama serials, documentaries
and. comedies. .The Schedules are sorely in need of something
such as. " Not &e’- Nine- O’clock News,” to brighten them up.
-r./At YSO Radio 3 mounts a stereo relay of Prokofiev's The
Love of Three Oranges from Glyndebourne. You won't of course
be^able to. see Jtaurice Sendak’s designs, for this new production,
but you will "be able to. -hear Wllaiti White’s King of Clubs,
Hyland . Davies as .his melancholy son,; and Nelly Morpurgo as
Fata Morgana the witch. Like “Gulliver’s Travels” this opera
has ' somehow acquired a reputation as being especially suitable
for tihUdren despite- its .wholly adult attitudes.

On Radio 4, clashing with "the opera. isOrlgjns, a short pro-
:grattbne about tbe-Compilation of the M Fresco File," a four-year
survey of. every." known. wall -painting in England. Many new
frescos have been, discovered, including one containing the
earliest known picture of a wheelbarrow!

- ‘ • Easily the best bet on teli vision' is ITVYThe Police And The
Public, 7 another of Granada's ^occasional “ hypothetical *» in which
people with-some particular responsibility discuss how they would
handle imaginary but entirely realistic incidents.

BBC 2

. . 640-7.55 am Open University.

. 9.00-940 For Schools. CoWeges.
1040-10.55 Play School. - -

: 124S:pm For Schools, Colleges.
540 The Work vioi ScBiooi
Governors. *

t5.4® Charlie Chaplin in “The
' Fireanan.” -

640- Barry Norman in Chicago.
" 6155 News Summary,

7.00 Spirit of Place.

• 8.05 The Cortege.

9AQ "The Evil Trap.”

1045 Cartoon Two.

10454145 NewsnighL -

LONDON

945 sun Schools Programmes.
1145 President Reagan in Lon-
don. 1.00 News, plus FT Index.
240 Thames News with Robin
Houston. 140 Crown. Court, 240
After Noon Plus. 2.45 My
Father’s - House. 3.45 Home
Sweet Home, 445 Porky Pig. 440
Runaround. 4AS CB TV-— Channel
14. 545 Emmardale Farm.

5401 News. "...

. 6.00 Thames News. with
. • .* Andrew- Gardner and Rita
Carter. . .

* 640 Help! Community action
' . with Viv Taylor Gee';

640 Crossroads.

545 Reporting London.

740 “ That ! Lucky Touch,"
starring Roger Moore,
Susannah York, Shelley
Winters and Lee J. Cobb.

9-08 The Brads. Report.

10.00 News.

1045 Middle East— The Longest
War.

1145 Crying Out .• Loud, with

Anna

Maw.

Ford and James

1245 am dose: Sit Up
Listen, with Pam G

and

ems.

tin dD cates programme in black
and white

All IBA Regions as London
except at the following times: -

ANGLIA

120 pm-.- Anglia Naws. -345. Looks
Familiar. 6.00 About Anglia. . 730
Gambit. 11AS Quincy. 1240 am
Tuesday, Topic. .

BORDER

1.20 pm Border News. 3.45 Looks
Familiar. S.15 Jangles. . 6.00 Look-
a round Tuesday. : 7.00 Em mar da la Farm.'
11.55. Bordar Naws Summary-

CENTRAL

1.20 pm Central News. 3.45 Looks
Familiar. 5.15, 1 Jaag las. B.00 Cross-
roads. 6.25 Central News. 74X1 Emmer-
data Farm! 11.55 Contra! News. -12.00
Angling Today. 1230 am Come Close.

CHANNEL'

130 pm Channel- Lunchtime New*,-.
Whit’s On "Wh era and Weather.' 3.45
Welcome Back Xctter. £20. Cross-
roads. 6.00 .Channel' Report..' 6.30

Looks Familiar. 7.00 Private Benjamin. HTV Cymni/Walao— As HTV West
1Q.B0 -Channel Lata News. 11.55 Nero excapt; 9.35-9.50 am Mwy Nan Lai.
Wcftfe. . ; 12-GO am Com mo «a Ira a at 4.T5-4.45 Ar Ei 01. 6.00 ,Y. Oydd. 6.15-
f revision? Mateorologiquas. ' C3& Report Wales.

'£■- GRAMPIAN /

.2125 am First Thing.-' 120 pm 'North'
Nawa. 3.46 Looks FsmilTar. 6J» North
Tonight... -7.00 The .Electric Theatre
Show. .11.55, -Spellbinders. 1225 am
North Headlines.' '

GRANADA

- 120 pm . Granada Ra porta. 120
■ Exchange Flags. . 2.00 Crown Court.
240 Home Franc. 3.45 Looks Familiar.
5; 15. Happy Days. 6J» This Is Your
Right. '{(.05 Crossroads. .620 Granada
Reports. 7.00 .Emmer dale Farm. 11.55
Barney Miller. 1 2.25 am Late flight
From Two.

HTV *

1.20 pm HTV News. 3.45 Looks
Familiar. 4.15 Aak Oscar!- 5.15 Difl'rent
Strakaa. 6JU HTV News, '.7.00 Emmer-
dsle Farm. 10.43 HTV Nawa. 11.55
.Portrait of a Legend.

SCOTTISH

1.20 pm Scottish News. 3.45 Looks
Familiar. 5.10. Tsatima Tales. 620
Crossroads. 600 Scotland Today,
followed by Job Spot. 6-30 What’s
Your Problem? 7.00 Emmardale Farm.
11 JSS Late Cell. 1220 Superstar Profile.

TSW

120 pm TSW News Headlines. 3.45
Welcome Back Kotter. 5.15 Gus
Honsybutv's Magic Birthdays.. . 520
Crossroads. 6.00 Today South West.
6-30 Looks Familiar. 7.00 Private
Benjamin. 10. E7 TSW Laie News.
TL5S Nero Wolfe. 12.50 am Postscript.
12.55 South West Weather.

TVS

1.20 pin TVS News. 3.45 Look a
Familiar. 5.15 Watch This Space . . .
Lam on of .the Weak. 520 Coast to

Coast. 6.00 Coaht.to Coast (continued).

7.00 The Rnaf World. 11 2B -Brass in
Concert. 12j4D am Company.

TYNE TEES

825 Tha Good Word. 920 North
East News. 120 pm North East News
end Lookaround. 3.45 Tha Riordans.
5.15 Jangles. BJ» North East News.
6.02 Crossroads. - 6JS Northern Lira.

7.00 EmmBrdela Farm. 10.55 North East
Naws. 11.55 Tho Two of Us. 1225 am
Tho Sound of Silanes. .

ULSTER

120 pm ^gchtime. 3.45 Looks
Familiar. 4.13 Ulster Nawa. 5.15 Happy
Days. 6.00 Good Evening Ulster. 7.00
Emmardoie Farm. 10-54 Ulster Weather.
.11.55 News at Badtime.

YORKSHIRE

120 pm Calendar Naws. 3.45 Calen-
dar Tuesday. 5.15 Jangles. 0.00 Calen-
dar (Emley Moor and Balmont editions).

7.00 Emmerdele Farm. 1126 Barney
Miller.

(S) Stereo broadcast - {when Jrraadcast
' on VHF) "

RADIO T

5-00 am As Radio 2. _7.00.Mlke Reed.

9.00 Simoa Bates. 1130 Psul BumaR.

2.00 pm Slavs Wright. ' 4.30 Pater
Powell. -7.00 Talkabout. 8.00 David
Jensen. 10.00-12.00 John Peel (S).

RADIO 2

5.00 am Steve Jones (S). 730 Tarry
Wogan (S). 10.00 Jimmy Young (S).
12.00 ' Gloria. Hurtnlford (S).' 2.00 Ed
Stows n (S). 4.00 David Hamilton (S).
5.45. News. Sport. 6-00 John Dunn. (S).

8.00 Tha Golden Age of Hollywood (S).

9.00 Us ten to tns Band (S): . 9 JO The
Organiat Entertains fS).. - '9J® Sports
Desk. ' 10.00. Tony Monopoly at tha
Vanaty Club. 11.00 Brian Matthaw
with Round Midnight (stereo from mid-
night). "1.00 am Encore IS).-. 2.00-6.00

RADIO

You and; tho Night and tha Muaic (S).

RADIO 3

635 am Weather. 730 Naws. 7.05
Morning Concert (5):. 820 News.

B.05 Morning -Concert (continued). 9-00
News. 9.05 This Week's Composer:
.WVaidl .- (5), 10.00 .Bournemouth

Stnfonietta (S). 11.10 Luciano- Berio

(S). '1120 Chopin and Strauss cello
and piano -recital (5). 12.10. pm BBC
Bconish Symphony Orehastra. part 1
(S>. --1JOO News. 1.05 Si» Continents.
725. BBC Scottish Symphony Orchestra.
peer 2 (SJ. 225 Tears of Pain and
Jby.(S)'.'' -320 Malcolm ' Arnold (S).
330 ;Univ)irsity.,o'f Wales Recital (S).
4^55 News. . 530- MainJy for Pleasure
(S);- 6 JO Jazz Today (S). 7JXJ The

Living Poet (PatBr Levi). 730 Glynde-
bouma Festival 1882: “The Love of
Three Oranges," opera by Prokofiev
(sung in French); direct from Glynde-
boume (S). . 9.45 Doing Good by
Doing Little. 10.10 Northern Sinfonia
of England (S). 11.15-11.18 News.

RADIO 4

6.00 am News Briefing. ,6.10 Farming
Today. 6.25 - Shipping Forecast. 030
Today. 647 Yesterday in Parliament.
8.67 Westhsr, travel. 9.00 Naws. 9.05
Tuesday Call (Outdoor Eating). 10.00
News.:' 10.02 From Our Own Corres-
pondent. 1030 Daily Service. 10.45
Morning Story. -11.00 Newa. 11-03
Thirty-minute Theatre. 1133 Zoo Talk.

11.60 President Reagan’s Address at
tha Houses or Parliament. 1247 Village
Vignette. 12.55 Weather, programme
news. 130 The World at One. 1.40
The Archers. 1.55 Shipping Forecast.

2.00 News. 2.02 Women's Hour. 330
News. 3.02 Never Been Kissed in. the
Same Place Twice. 430 News. 4.02
Lincoln Latter. 4.10 Enterprise East.
4.40 Story Time. 5.00, PM: News Maga-
zine. 5.50 Shipping Forecast. 5.55
Weather.' programme naws. 6.00 News,
including Financial Report. 630 Brain
of Britain 1982 (S). 7.00 News. 735
The Archers. 7.20 Babytalk. 7-50 Fila
on 4. 8 2D Constable Country. 8.50

Origins: Tha Fresco File. 9.05 In Touch.
930 The Banquet at Windsor Castle
given by the Queen in „ honour of
President Reagan. 9.59 'tiaeihor. 10.00
The World Tonight. 1030 And So To
Ned. 11.00 A Book at Bedtime. 11.15
The Financial World Tonight. 1130
Today in Parliament. 12.00 News.

FT COMMERCIAL LAW REPORTS

Director disqualified for not delivering accounts

BE CIVICA INVESTMENTS LTD AND OTHERS
_ . Chancery Division (Companies Court): Mr Justice Nourse: May 27 1982

A DIRECTOR who leaves the
discharge of his responsibili-
ties to the company’s
accountants is not thereby
excused for his failure to file
accounts and returns; bat the
court, when deciding .whether
to disqualify JUm for such
failure, or assessing the period
of disqualification, should
have regard to the' circum-
stances and impose the
marinuwn - disq ualification
only if his defaults and con-
duct were of a serious nature.
Applying those principles, Mr
Justice Nourse granted an appli-
cation by the Secretary of State
for Trade for an order disquali-
fying Mr Roger JohxkAnsell from
acting as a director. Mr Ansel 1
was disqualified for one year.

Section 28 (1) of the Com-
panies Act 1976 provides:
“Where, on the application of
the Secretary of State, it appears
to the High Court that a person
has been persistently in default
in relation to relevant require-
ments of the Companies Acts,
the court may make an order
that that person shall not, with-
out the leave of the court be a
director of or in any way, directly
or indirectly, be concerned
or fair** part in the management
of a company for such period
— not exceeding five years - -

- 4 - *

HIS LORDSHIP said that Mr
Ansell was a director of 13 com-
panies, including eight of which ,
he was sole director. He admitted
that in the case of all 13 com-
panies he had been in default
under the Companies Acts.

There had been 298 separate
defaults from 1976 onwards, 252
in relation to accounts, and 46
In relation to annual returns. Mr
Ansell was convicted in respect
of 48 of the defaults relating to
accounts, and 11 relating to
annual returns. He was- fined
£585.

His first appearance in the
magistrates' court was ax the

end of August 1980, and that,
produced considerable results in ‘
the way of bringing matters up
to date. However, in. the case
of three of the companies, the
necessary steps were not taken
until January 1982.

In the present application the
Trade Secretary sought an order
pursuant to section 28 (1) of
the Companies Act 1976, 'that
Mr Ansell should not be a
director without leave- of the
court, or take part in the manage-
meat of a company, for a period
not exceeding five years.

In mitigation, Mr Ansell
asserted that until .1978 he took
little or no part in the manage-
ment of four of the companies.
In 1978, when he took over their
management, new 'accountants
were employed who were, in fact
now the accountants and auditors
to all 13 companies. They had
had standing instructions to
secure the companies’ com-
pliance . with the relevant
requirements of the Acts.

. However, Mr Ansell said, not-
withstanding those instructions,
the accountants did not do what
they ought to have done, and he
had been under the false
impression that the companies
were duly delivering accounts
and making returns. ■ -

He niade the point, with
respect to seven other com-
panies, that five of them -had
never traded, and had no assets
or liabilities; the sixth had not
traded for some years, and there
was very little activity within
the seventh. He had mistakenly
believed that it was unnecessary
to deliver annual accounts in
respect of any years in which a
company had not traded. With
regard to the other two com-
panies, he said there were par-
ticular difficulties in preparing
accounts.

The defaults of which com-
plaint was made had now been
remedied except in two. cases.
As to those, his Lordship was
satisfied that Mr Ansell had done

his belated best and was likely
to be able to put matters right
is the- sear future. There had
been a few further defaults in
the meantime, where again, Mr
Ansell had been doing his best
He had expressed regret for his
failure to comply with his
statutory obligations, and said
that it was not wilful or
deliberate. He said he would
do his utmost to ensure that his
statutory obligations were com-
plied with in future.

Section 28 of the 1976 Act
gave the Companies Court power
to order disqualification where
the person concerned had
persistently been in default in
relation to the filing of returns,
accounts and other documents.
From June 15 1982, section 28
was to be replaced by an amend-
ment to section 188 of the 1948
Act made by section 93 of the
1981 Act, but it seemed that the

new power of disqualification
would be no different from the
old.

The power was something
which should be dealt with com-
paratively briefly and without
elaborate reasoning It was on-
desirable for the court to he
taken through the facts of
previous cases in order to guide
it as to the course to he taken
in the particular case before it.
■fc

Although' it appeared to have
become the practice to ask for
an order for the full five-year
period, that was merely a maxi-
mum. What the court had to do
was Impose such period of dis-
qualification, if any, as it might
think appropriate, bearing in
mind the upper limit of its
power, and disregarding Its
further power to give leave to
act in the future notwithstand-
ing the disqualification. It would
not be right . to impose the
maximum period of disqualifica-
tion irrespective of the degree
of blame involved, and then
le&ve it to the person concerned

to come back and seek leave tq
act in the future.

The fact that the five-year
period was a maximum must, on
general principles, mean that
the longer periods of disqualifi-
cation were to be reserved for
cases where the defaults and
conduct Of the person in ques-
tion had been of a serious
nature, for example, where
defaults had been made for
some dishonest purpose, or wil-
fully and deliberately: or where
they had been many in number
and had' not been substantially
- alleviated by remedial action
anH convincing assurances that
they would not recur in the
future.

The present case was origin*
ally one of extensive faults,
even if not wilful or deliberate.
Mr Ad sell's plea that be left the
discharge of his responsibilities
to the accountants might be an
explanation, but could not be as
excuse for those defaults.

Had the defaults not already
been substantially alleviated by
remedial action, a disqualifica-
tion of considerable length would
have had to be Imposed; but his
Lordship took account of what
Mr Ansell bad done to put things
right, and of his very convincing
assurances that defaults would
not occur in the future. On the
other band, it would not be right,
in view of the number and extent
of the defaults, and the time
that it had taken to remedy some
of them, to impose no disqualifi-
cation at a£L

The case depended on its own.
facts, and in the circumstances
Mr Ansell should be disqualified
for one year.

For the Secretary of State: John
Mummery (Treasury Solicitor)..
For Mr Ansell: Christopher
Brougham (David Dee and Co.).

By Rachel Davies

-Barrister

RACING

BY DOMINIC WIGAN

GAVIN Pritchard-Gordon,
whose Newmarket team has
made little impact this season,
must be hoping that Bless the
Match can improve . matters at
Lingfleld today.

One of eight runners for the
six-furlong Leisure Stakes — a
listed race for three-year-olds
and upwards carrying £12,000
added prize money — this
course-and-distance winner is
thought ready to show im-
proved form from when she
chased home Gabitat Woriing-
worth, and Davenport Boy in

Kempton's Victor Wild Handi-
cap.

Still on the backward side in
that event, she looked the eaqh-
way answer to this afternoon's
event'

Of the Newmarket filly’s
rivals, Travel On and Admiral’s
Princess are the most promis-
ing. Admiral’s Princess, a well-
beaten fifth when second-
favourite behind Cajun for
. Hay dock's Gus ' Demmy
Memorial Stakes, ' had pre-'
viously touched off Celestial
Dancer in Newmarket’s Holsten
Diet Handicap. The booking of
Carson, for Peter Wahvyn’s
Travel On suggests that the
Tachypous filly can leave heir
disappointing Duke of York
Stakes sbofwing behind.

A second possible winner for
Walwyn’s . Seven Barrows
stable, which used regularly to
turn out one of the season’s
biggest total of winners, is
Kwela in the Manor Maiden
Fillies Stakes. There was much
to like about the way this
strongly made Dance In. Time
filly kept on against three
sharper rivals — Bumpkin,
Spindle Berry and Mysotis —
when taking fourth place in
Salisbury's five-furlong Rub-
bing House Stakes.

Sure to be ideally suited by
the additional furlong of the
Manor Maiden, Kwela. a half-
sister to Candy Castle and
Main top, will be hard to beat.
She appeals as the day’s best
bet on the Surrey course.

Patrick Haslam’s runners at
Hamilton are, as usual, not to
be ignored this evening. Two
possible winners for him there
are Mott the Hoople, among
the runners for the Wylie
Handicap, and Naishapur. who,
has the disappointing Mardl
Gras to beat in the closing
Saints and Sinners event.

LING FIELD

2.30 — Bless the Match*

3.30 — Chads Gamble

4.30— Kwela***

• 5.00 — Hot Mantle

HAMILTON
7.00— Shabby
7.50— Mott the Hoople
&20 — Johnnie Hussar
9.20 — Naishapur**

New electronic bird watcher
scans North Se i air traffic.

Who would expect air traffic to be much of a
problem anywhere near this Ionely.headland
•in the Shetland Islands, far to the north
of Scotland?

The reason is simple. Oil!

The Shetlands, once better
Jknowh for sweaters and sheep,
dogs, are just a hop by heli-
copter from North Sea oil fields.

Its not surprising, then, to find
a sophisticated radar system
in use keeping busy whirlybird
air traffic safely under control.

Inside the cocoon-like •
shelter shown in the photo (left)
is the antenna of such a system, designed and
built by Cossor Electronics Limited for the
U. K. Civil Ayiation Authority. A.t the airport
nearby, controllers use Cossor displays to. _
monitor approaching and departing air traffic.

This is just one of- hundreds of similar radar
systems that Cossor, a Raytheon company, has

supplied for use at airports around the world—
and just one part of Raytheon's widespread
involvement in air traffic control.

Raytheon has recently
completed a fully integrated
air traffic control system for
theFederal Republicof Germany.
In the United States, we have
long been a supplier of radars,
automated displays, and com-
puter systems for the enroute
air traffic control network.

Raytheon... a S5.6 billion
company in electronics, aviation,
appliances, energy, construction,
and publishing. For copies of our latest financial
report, please contact any of the offices or
companies listed below, or write: Raytheon
Europe, 52, Route des Acacias, 1227 Geneva,
.Switzerland, orworldwide headquarters, Raytheon
Company, 141 Spring Street, Lexington.
Massachusetts, U.S. A. 02173.

FOR INFORMATION ON COSSOR] Cossor Electronics limited. The Pinnacles, Elizabeth Way Haricot Essex CM 19 5BB, England. Tel. 0279/26862.

F 1 . . 1 — .

OTHER RAYTHEON COMPANIES IN EUROPE: Electronics: Data Logic limited;' London, England * Haythecn-Copenhagcn, Denmark • Raytheon
HaJblater.GjiLb.H., Munich, West Germany • Raytheon International Data. Systems. Amsterdam, Netherlands; Frankfurt. West Germany • Raytheon
Marine limited, London, England • TAG HalNater Gjn.b.lL BoeHingen, West Germany • TAG Seira conductors Limited, Zurich, Switzerland • Wire

and Cable: Electrical Installations Limned, L

England • Le HI Dynamo/S-A-, Meyzieu, France • Gteengate Cables Limited, Manchester, England 1

Klaring G.m-b.H & Co., Ingoktadt, West Germany * Lacroix & Kress GjabJi & Gx, Bramsche, West Germany • Sterling Cable Company Limited,

Aldermaston. Berkshire, England.

RAYTHEON OVERSEAS UMTTED, EUROPEAN OFFICES? Bonn, Brussels, London, Madrid, Paris.

16

Financial . Times .Tuesday.

THE MANAGEMENT PAGE: Small Business

EDITED BY CHRISTOPHER LORENZ

ICFC risks more

to stay the course

Tim Dickson explains the shifts fin the finance group’s strategy

LIKE ALL healthy institutions
which plan to survive, the
Industrial and Commercial
Finance Corporation has had to
re-examine its role in the light
of changing circumstances.

Founded in 1945, ICFC has
grown consistently in stature
over the last 37 years and has
1 established itself as probably
. the leading UK provider of
"specialist long-term finance for
the smaller business. Over this
. period it has carved out an
; enviable niche in a hitherto
" neglected market.

Today, however, Its managers
would have tn admit that things
are not necessarily going all
' their way.

Political enthusiasm for the
small firms sector has been
accompanied by a big explosion
• in the number of other sources
- of small company finance.

Clearing banks, merchant
--banks, investment trusts and
specialist funds have all
plunged into the long-term risk
capital market to such an
extent that LGrd Caldecote.
ICFC’s chairman, said in his
annual statement' last year that
there is now too much money
chasing too few situations.

This “ equity glut " provides
a potentially serious challenge
:o a financial group whose
customer base, unlike other

iiajor financial institutions, is

asclusiveiy the small- to
— nedium -sized business.

Herein, however, lies one of
its major strengths. For over
±e last four decades ICFC has
3uilt up what it would claim is

- an unrivalled expertise in
assessing risk and devising
Inancial packages for the small
firm.

ICFC is 85 per cent owned

- oy the English and Scottish
bearing banks which, at the
end of the Second World War,

-.’eluctantly responded to
Government pressure for a new
•.nstitution to help finance
mailer firms. (The other 15
per cent of ICFC is held by the
Bank of England.)

Its early existence was pre-
carious enough with the banks
(notably the Westminster
Bank) keen to limit the scope
of their new offspring. Today,
however, while the relationship
, with shareholders is still not
always easy. ICFC’s success at

achieving its initial objectives

can hardly be challenged. Its
^portfolio of around £450m in

roughly 3,700 smaller busi-
nesses continues to grow apace.

ICFC arranges deals of as
little as £5,000 (though these
are admittedly rare) up to a
maximum of roughly £2m. Long
term loans (up to 20 years)
plus equity finance are. its
traditional weapons, but Sue
Palmer, business development
manager based at the group's
Waterloo Road. London head-
quarters. stresses that ICFC’s
hallmark is a package tailored
to suit individual requirements.

■* We go into a meeting with
a prospective client with an
open mind, not with a little bag
oF 4 products she says. “ What
we are making is a commercial
assessment, not a credit assess-
ment. We are saying to our-
selves * Will this business
survive? \ * Is there really any
upside potential? ', 4 Is the

management really com-
mitted?’. From this approach
comes our ability to adapt
schemes to suit particular

going to sell only 50,000. What
we want to know is how he is
go Mg to sell those 50,000.”

While ICFC undoubtedly has
misgivings about some of the
City institutions which are
throwing money at the small
business sector, the extra com-
petition does not appear to have
dampened down, demand for its
own services.

In the year to the end of
March 1982, for example, ICFC
is understood to have beaten
(though only just) the 1,114
deals completed during the 12
months to March 1981. The book
value of these new investments,
moreover, comfortably topped
£100m in 1981/82 (£97m in
1980/81).

It is clear, however, that
ICFC is having both to be more
aggressive in its marketing —
advertising on TV, for example,
was a new departure last year —
and to adapt more and more
quickly to changing conditions.

Robert Smith and Sue Palmer: stressing ICFC’s greater flexibility,
but denying that It is “pumping out money for its own sake 7 *

circumstances.'

Technology

Much of the skill, of course,
depends on the quality of the
ICFC teams which are scattered
round the country in its 22 area
offices (including London).

Very roughly ICFC’s
managers are one-third accoun-
tants, one-third business gradu-
ates (most of whom have done
a spell in industry) and one-
third graduates who have joined
straight from university. There
are no former bank managers
on the staff.

The increasing emphasis on
start ups and mangament buy-
outs has continued. In the 12
months to March 1981 some 400
new businesses (those up to
three years old) were financed
but in 1981/82 this figure was
probably abuot 10 per cent
higher. Well over 100 manage-
ment buy-outs were supported in
the most recent period— com-
fortably more than by any other
single institution — compared
with 69 in 1980/81.

"What worries us are some of
our competitors who are unin-
formed. We- have semi com-
panies financed with structures
which we think are wholly in-
appropriate and a lot of them
are going to fail. We know from
our own statistics, for example,
that one in three of the new
businesses we back do not
succeed."

viders of equity finance, ICFC
is frequently the target of
criticism that its funds are
expensive. Like other private
sector, institutions it . is in
business to make! a profit but
unlike, say, the clearing, banks,
it does not benefit from the
“endowment" effect of big cur-
rent account balances.

In spite of this mix, which is
consciously reflected in area
offices, ICFC is sometimes
accused of not always having
the proper technical skills to
understand, say, high tech-
nology businesses. Palmer coun-
ters this by pointing but that
the group has a full-time man-
agement advisory service based
at Solihull. Staff there include
technical experts who can be'
called in by any ICFC manager
to check out market and product
information.

Smith comments: “The rate
of change at the moment is
faster than ever. We have
adapted in the last few years
by taking more risks and becom-
ing more flexible in the type of
deals we are prepared to
finance. We know that we are
taking more risk than we did
five years go.”

In spite of increasing its busi-
ness. ICFC insists that it is not
44 pumping out money for its
own sake." •

The extent of ICFC’s “ after
care" service is an issue cur-
rently exercising its corporate
mind. “The larger, more pro-
fitable and well managed com-
pany may only require us to go
to its annual meeting but at the
other end of the scale, where
there may be limited managerial
experience, our people may need
to spend as much as half a day
a month," says Palmer. 44 On
these occasions .we would be
asking for financial information
which they might not normally
think about and we would be
acting as a sounding board for
any problems*

Robert Smith. TCFC's assistant
general manager, adds, “In any
case, we don’t want to know
that the total world market is
500m widgets when the guy we
are being invited to back is

“We have around 2,000
equity stakes, of which around
150 are currently in receiver-
ship or liquidation," says Palmer:
“ Last year this figure was about
110. A lot of our effort has been
going into helping companies
ride out the recession and
monitoring the existing port-
folio. Managers are not just
rewarded ' for acquiring new
business.'’

Alternatively ICFC might
appoint a. nominee -nonexecu-
tive director — an outsider
rather than an ICFC employee.
“We are recognising more and
more that those involved with
start-ups have experience of
theiT product but there are
many other sides to running
a business and that is where
they may need help.” This is
a delicate area for ICFC,
though, for many entrepreneurs
fight shy of what they see some-
times as “interference." ICFC.
moreover, has traditionally
emphasised its “hands off”
approach.

- In common with other pro-

All loan funds have to be
raised on the open market and
are matched against the term
of a customer’s borrowing. This
is wby ICFC charges a penalty
for early repayment

ICFC is also felt to drive a
hard bargain when, it takes mi
equity. . stake — these are
financed entirely, from its own
reserves. The point was illus-
trated in a recently filmed case
study of an ICFC-backed com-
pany where the interviewer
asks the entrepreneur “When
did you first feel that the busi-
ness really belonged to you?"
He immediately replies: “ICFC
owns the company.” This was
a tongue-in-cheek and in-
accurate response — ICFC only
holds a 20 per cent stake in
this case and never accepts -a
majority shareholding — but
one which nevertheless repre-
sents a not untypical reaction.

The ambivalence of the
entrepreneur towards giving
away equity is one cross which
it has to bear but where ICFC
is unsecured and taking a risk
it insists that it has to seek
a . commensurate reward. An
institution which is looking for
tough, resilient management,
however, should not be upset if
it encounters tough bargaining
from the entrepreneur.

Amendments to Finance

SMALLER BUSINESSES have
not yet been much -affected by
the Finance Bill's fairly sedate
passage through Parliament —
but there have bees a ample of
minor amendments so far
which should bring some cheer.

One concerns the Business
Start-up Scheme, first intro-
duced in 1981, winch allows in-
dividuals to daim tax relief at
their top marginal rate of
income tax on investments in i
new company. The limit m
1981-32 was £10.000 per person
but in Ms Budget speech the
Chancellor -announced that this
would be raised to £20,000,' both
this year and for 1983-84- More-
over. unused relief last year
could be carried forward.

after the. qualifying company,
has begun to trade.' This dearly
was seen as a discouragement
to investors in a bnsmess^with,
say, a long development pro-
gramme. . ’ ■ ’ :

-Now, however, the Govern-
ment has reacted' to pressure
and has inserted its own. amend-,
ment tn Clause 45: of the Bill
with the: purpose of reducing
tiie “ waiting ’-.jierioii- to' four
months. ■" " .7; : . ‘ • :

This increase in the scope of
the scheme , satisfied some
lobbyists— but there has - been
much criticism of the. rule that
investors are not entitled to
daim relief until 12 --months

- -The other change concerns
Value .Added Tax: and Clause
12. This caused ampety for some »
people because it implied that
if at theend of a l2-fflouth
period a - business’s taxable
supplies fell below one half the
re gis tration limi t (£17,000 as in-
creased in the Bill) the Com-
missioners of Customs and .
Exrise could compulsorily order
deregistration.-

Thanks' to. a Government
amendment- which wiU be-mkde

at the Repprt siiage^ flie effect
of: this; Clause will ;*be * with-
. drawn.' It. -means thabVbusiness
whose turnover is- betas* the.
registration, limit can continue
to he registered and reclaim
VAT on Ite ‘'inputs ” (eg
materials). -

So- far the Bril -is: still pass-
. irig "'through.' the bomnuttee
stage with; discussion due to re-
sume -today, at . Clause 47.. This
: means that 1 ' issued, such as tile
purchase by a company, of its
own shares and.- the indexation
. of capital -gains tax -have not
yet bemi considere.d.'The capital
gains tax -proposals— although
widely welcomed -m- principle—
have generated more' heat loan
most, in particular, lobbyists
would like to -see - relief for in-
flationary gains granted retro-
spectively, relief against losses
and the abolition of the rule
which profits indexed relief
for the first 12 months alter
purchase. . . . -. •

In brief

APPLICATIONS continued to
flood in last month for the
extra £10m allocated, by the
Government to the Small
Engineering - Firms Invest-
ment Scheme on top of' the
original £2 0m. . About 1,000
companies had sought assist-
ance before the announcement
of the extra allocation and
several hundred more are
understood to* have applied
subsequently. The scheme pro-
vides for a 33} per cent grant
for small firms towards invest-
ment in computer numerically
controlled machine tools. The
scheme has how closed.

Still available, on the other
hand, is the Products and
Processes Development
Scheme (PPDS), which com-
prises a number of separate
schemes administered by the
Department of Industry aimed
at particular sectors. These
primarily support research
and development and product
development work and are
open to firms of all sizes.' The
grant available was recently
increased from 25 per cent to
33} per cent of a qualifying
project Further information
on the . criteria applied can be
obtained from any Depart-
ment of Industry Regional
Office or Small Firms Advice
Centre.

on changes in seven different
. industries. . 1

The report Making an
Tmpressioii*, examines snail
scale printing - equipment
work patterns, industry
organisation, the - efficiency
of small operations and -the
impact 6f how technologies.
About 95 per eenfc tf printing
firms In the UK . are . small
and they account "for - about
half.- of printing" sales'" and
almost half the employment
in the sector. .

The first ITDG' -report was
on. brewing? subsequent-
reports will investigate car
repairs, brick-making, wool
textiles, plastics, recycling and.
dairy processing. ' . .

'* Available from ITDG, 9
King Street, London WC2E
SHIV, price £2 each or £12 for
a complete set Telephone 01-
836 9434.

the cases was dismissal footed
to be unf air; and the a mdgt nt
of* compensation awarded Jjy
tribunais was less than £460
in more than one third of-fhe
“unfair cases" and less, titan
£750 in more than ball ot
them. '

*The Lato on Unfair Dismissal
—Guidance For: Small Firm*
B# Joan : Henderson: Available
. free from JSmip Utyment offices;
JOb Centres, Un&npfo&nent
Benefit - Office* - and . Depart-
ment of Industry Small Firms
Centres. -*=•■*

SMALL businesses often com- .
plain about the law on unfair
dismissal, arguing that it can
be a major disincentive to
taking on new employees.

- A booklet* just published
by the Department Of Employ-
ment both sets the reieyaht
rules In perspective arid pro-
vides a useful guide, for firms
without trained or experi-
enced staff to deal With them.

THE Intermediate Tech-
nology Development Group
has turned its spotlight on the
printing industry in the
second of a series of reports

The booklet' says -that less
than a tenth of ail dismissals
in a year result in unfair dis-
missal claims; two thirds of
these are settled without a
hearing— about half are with-
drawn, the rest settled by
voluntary agread compensa-
tion; in only 25- per cent of

“A- SMALL business is ' u
business that is managed by
not more than three man-
agers, or whose workforce
does not exceed 100 persons.”

These words are not written
lightly for they appear on
page 433 of -a new book-by
Dr Leah Hertz called. “In
Search of a Small Business
Definition.”

Dr Hertz has not failed to
do her homework. as the_snb-
title — 44 An expiorafion of
the Small-Business Definitions
of the U.S.. the UK,. Israel
and the People’s Republic of
China’* — would suggest
There are also . rtf crenccfS; to
the- Federal Republic of
. Germany. - • ' * . 7 5

Copies of the book, 'pub-
lished by the University Press
■ pf America (454 pages, soft
cover), '. arc obtainable in
London from Dillons, Foyles,
Sweet & Maxwell, The
Alternative Bookshop mid
Wildy & Sons find in Man-
chester from Haijjh ‘ &
Rockland. Price £13.50.

Tim Dickson

r

I

I -

•j ik*

;« . 3»

• ...

■••r. :

•*. -j i

-• I -

'PM!

A management

Seekinglong-term

Seeking long-
capital for expansion?

If yours is a profitable operation and you need long-tenri capital to fund a
buy-out from your parent company- or for any o ther reason -GresHamTErust could
provide the necessary finance. . . - -

Naturally you’ll want the finance packaged in the way that best suits your needs.
But how can you be sure youve got it if you haven't found out whatGresbam can offer?
Gresham Trust pJLc^Barringon House, Gresham Street, London EC2V7HE.Tet 01-6066474.

Gresham Trust

The competitive alternative for long-term capital

HOTEL

INVESTMENT
in a South Devon

prominent resort

Superb Seafront Position
3 Star Rating
Profit record prior to 1979.
excellent, since which time
major improvements carried out
resulting in tax losses during
the past 3 years.
Potential enormous, needs to be
exploited by good management
PRICE £425,000 •

.Fullest deta ils provided
Writ* Box F32BE. Financial Timas
10 Cannon Sirtnt. EC4P 4BY

FINANCE

EXECUTIVE

F.C.M.A. with extensive experi-
ence in senior finance role In
successful major U.K. Group
available for assignments (U.K.
or overseas) or to act as finan-
cial consultant.

M. J. ROBINS 0793 723247

ACQUISITION OF FOOD
MANUFACTURER

Major European company proposing to acquire
UK Branded Foods Manufacturer seeks experi-
enced help, on a fee/expenses basis, to find,
assess and open negotiations with appropriate
candidate companies.

Write in strict confidence Box F.3254
Financial Times , 10 Cannon Street. EC.4P 4BY

it Short/medium term loans
and overdrafts
* Commercial Mortgages-
it Business Expansion Loans
it Business Acquisition Loans
Up to £250,000 A ^» 0 pDrin.tMan

Full details ft orru Corinthian Securities^ V Securities

Limited

20 Wclbeck Strea, London W1M 7PG.
Tel: 01-486 2234.

BUSINESS

OPPORTUNITIES

Established businesses located west
of the Mississippi for sale by
owners. Many owner financed.
Trucking Firms
5340,000-51,900,000
Motorcycle Dealership*
540.000.S325.000
Auto Body & Repair Shops
S35.000-S500.000

Automotive Dealers, New ft Used
S49 ,500- $325,000
Oil ft Gas Jobbers '
S90.OQQ-S2 400.000
Service Stations ft Truck Shops
$17,500-5420.000
AFFILIATED BUSINESS
CONSULTANTS

BOX 6339, DEPT A
CO. SPGS-. CD. 80934
No tea to buyer involved

This recession-hit but proudly solvent
Company makes

REGENCY STYLE BOARDROOM
FURNITURE. ETC
Desks from £154 to pw £1,000.
Our strong survival instinct Is re fl ected
In our Quality and Service whothcr
vou order our well-made Standard, or
Custom-made solid Maimgnay furniture,
illustrated Catalogue and mca List
from

ELVA FURNITURE CO. LTD.

43/5 Per curator Road. Land on WL
(01-229 9311)

MANAGING DIRECTOR WANTED

FOR COMPANY OPERATING EXCLUSIVE AND EXPANDING
RETAIL SHOP IN WEST END

Must have good experience in the retail trade and be used to
dealing with exclusive merchandise.

Salary u Managing Director negotiable and Equity participation
available.

Whilst no age limit has been set. In view of the experience
' required, it is envisaged that the applicant will not be less than
35 years old.

Please reply in .the strictest of confidence with your Curriculum
Vitae to the company's auditors.

Write Box F3253, Financial Times
10 Cannon Street, London EC4P 4BY

Just published EIU Special Report No. 115

Management buy-outs

This report, the first to deal with this phenomenon of the
1980s in detail, explains bowUK employees can buy their
companies. It covers initial negotiations, theneed for
professional advisers, the financial aspects and the legal, tax
employee and other considerations in the light of the 198 1
Companies Act.

Price £30. Payment with order please to
The Economist Intelligence Unit Limited,

Subscription Department (FT), 27 St. James’fc Place*
London SW1NT. Telephone: 01-493 671L

Capacity

Markets

Simply Childs play?

The Irex concept like the jigsaw is simple, all the pieces
are needed for a business to be successful. If you are
looking for one or more pieces we can help you find them.

Highly sophisticated software has been designed to
introduce business opportunities to those seeking them. The
Irex Computer searches through its extensive database until
it effects suitable introductions. For instance, we have
£8,500,000 on our computer looking forthe right investment

This business introduction service is the most economical
way of locating any of thevital missing elements which lead to
efficiency and profits. Whatever your business requires or
can provide, you'll make profitable new contacts through Irex.

For details of the full range of services, telephone
Miss A. Bames on 01 -633 0424 or write to her at:

Ideasand Resource Exchange Ltd.
Snow House, Southwark Street,
London SEtflJF.

Commercial Woodlands

Threekingham Woods Spanby,
Lincolnshire

101 acres of easily managed plantations for sale, as a. whole or In

two Lots.

For Particulars: The forestry Commission, Hock D,

PRIVATE PROPERTY DEVELOPMENT
COMPANY FOR SALE
Mart profitable preparty devafopment
company seeks sale of shareholding.
Arittual trading profit tn ocen Of
£900.000.00 per annum. Next two
yean work load assured. Substantial
commercial ■- with minor Industrial
Interests. Capitalisation . - avonly
divided between Mould and fixed
assets. Some rental Income which

could rapldlv Improve. Eiiquirhg from
r In writing to.

bona fide . principals only ...

■ Mr Betid SauBon
• • MILNE BOOTH * CO. - -

C Park Square. Leeds .iBI 2 LX

INVEST IN AUSTRALIA

Industry Development Board of fast growing north coast region-
of New South Wales is interested in contacting, industrial organisa-
tions considering investment in Australia. Mr John Smith, the
board's representative, will be available for interview in London
June lOtli. 1 Ith next.

For appointment, please contact:

THE AGENT GENERAL FOR NSW
The Strand. London WC2N 5LZ - Tel: 01-8396651

BrooJdandi Avenue, Cambridge CB2 2DY, or
bridge (0223$ 5f

.telephone Cam!
Extension 2969.

58911

Forestry Commission

PUBLISHERS

Publishing company ra. interested
in acquiring a specialist
Publishing
specialist

PI use reply

Bax F3243, Financial'Timas .

10 Cannon Straat. EC4P 4BY

cquirmg a specialist
ling Company and/or
ht Books and journals

i reply » rfte Chairman

SOLAR CONTROL WINDOW HLM-
SAFETY FILM

Wa an offering exetftait quality at
lowest passible prices in ell available
colours and- size*. also. is.

Auto -films end supply of pn^uttad
sets for a wlda variety or can.

Far-more Information contact;

GKFA IMPORT-EXPORT

Kamp 12. rf-2359 Staten bom,

• Tel. 0419411305- Tehrt 319M47-

MANUFACTURERS

if you 4iv- Interested in exponfns
. than . contact' ua. Our execudviu
visit many, of the major markets
within Africa and the Middle .East

and would like thfi • Opportunity of
tha possibility

discussing ■ with jruu — ,
of ftpmentitiq you. there.

TEL: -01 -840 3530 - TWEXr. 291303

NEW PRODUCTS
INTERNATIONAL

A new monthly publication to kssp
you abrmet with the very latest
Hew preduct developments world-
vrida.. For detail* of a FOSE :TfflAL
effar, w hta today; . .

New Products International. .. .

Dapt FT7

15 Salvage Lana. London NW7 3SS

PROPERTY MANAGEMENT •

Old established and hishly reputable
firm cf property mananare and caa-
1 attain surveyors In South Wart London
With young Mthtfsiratlc professional
team ana low overheads wishes to-
wand and improve its existing pro-
perty management portfolio. ..Would
be interest*! In semiring crfttjrtfi
practices or portfolios, or moattag pro-'

party owners who require economic,

highly efttieot property management
ate** cost- Writ* sex F3255,

S^'e^bV . 0 Canntw

WHY LEASE YOUR
NEXT GAR?

• You cui buy on- our

- * Purchase Plair

* initial rental

* months mpayhreut

• • -• No VAT on rsntsle

* Ultimata ownership
FERRYWISE FINANCING ft LEASING

Tel: Esher (0372V 62467/66780

INSUBLIND

Window Insulation Systems

It’s not surprising that InsuhUrid has caught on. so
quickly. It costs only a quarter as.niuch as . secondary
double glazing, yet it’s just as effective. • So it’s
opened up a new market. ..A market that is ndw
available to you, arid the profit from fitting is high.
Insublind meets the DOE recommendations and- the
National Building Regulations. It performs so well -
in fire tests that you can sell, it to offices as well as.,
homes. A quick return on a low ^capital outlay.
£5,000 secures your Distributionship area. . As a
Distributor of Insublind, you' would have an irea
guaranteed free from competitors (there will hi
only 29 Distributors covering the U.K.) . • 1 -

Each year that fuel costs rise, so does , the ;markfet
for insulation. Until ndw, double glazing ; has entailed
a heavy investment, both : for the fitter and the
customer. Insublind brings down the cost to both, -
making it easier to sell.. We provide you. with a^"
well-engineered, fully proven product, yet at a price i
competitors can’t touch. -

INTERESTED? WRITE TODAY AND WE’LL DIS- '
CUSS DETAILS AND AREAS'. 'WITHOUT- OBLIGA-
TION.' ' ■: ; ..

rollerglaze ltd.

32, Town Hill, Wrexham, Clwyd LL13 8NB

Factoring provides finance; beyond.
conyentionalboTrowing Emits,
without summderingequity or '
-mahagemeiR independence. - .

. Alex.I^wrie.l^ctofS Limbed

For d ceajlsc ontact: London (01) 626 0484,

|teHfl>l(0272)2913M Cbventr>^J203) 56653 Manchester (Q 6 I)i &47415
' Newcastle (0632) 325879 Edinbufgh(Q31) 226 45993aDburv< 0295) 56D41 '•

FINANCE FOR THE r
DEVELOPING COMPANY

« \ Obtain detaits ofour .

\ FACTORiNG AND INVOICE DISCOUNTING- SFRVIfy

ARBUTHNOT FACTORS LTD

Breeds Place, Haittfngs,TN34 3DG

Contact S. E. "finch Tel: 0424430824
«■ ^• p ho n «; teeds 0632444578. h. v-
London 01-638 1301 Manchester 061-236 9777

Birmingham 021-454 79E2 Nottingham 0602 5988ZT
Newcastle 0632 614545 -Bristol 0272 Z79555

.4*

,fc-r\v

active

PUBLjS^NGj^^ANY

A suecetsfa I publisher, recency, rwre^^f rom r previous oub
venture -.which he established and controlled -apd - jvfcicti -now-nx

perron to expend- his- new publiAeig venture, -which although difr
sttupover one year, has already 1 Substantial progress -Swards
estaoitshmg itself as .a presrigiow and successful publication.-:
■The^gubliiher s existing hWettdant'-k'-ln t^e reoW

.i— -. -aw.- .., --fc; - --- - • • ■"V ' ^ ‘ •

Financial TJhnt, lO Cxnno&Xttoac'Lonfcm EC'fr dSf^ ^

>>

.iS

. V

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‘Va--

jy

PlA

^■1

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v F :;

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cSS.

in*-.-, i

! sttO:

ffi nan ciaj Times Tuesday. June 8- 1982

^ FOR SALE
LEASE PORTFOLIOS

Portfolios of 1st. class leases together with upused
capital_allowancesjare for sale at prices. ol£100,0G0-
£2,500,000.

Purchaser probably seeking a hedge! against tax can
if required benefit from, the contmuation of the
vendor's computerised . management facility • to
guarantee the full collection of the outstanding
rental income. • ' v ; r

Please write. m . confidence fo Bov F32S8, Financial Times
v 10, Cannon Street. London. EC4P 4BY

NEW BUSINESS OPPORTUNITY

Two buonuimm how* davefepad end jratfflcttd a now. low coat,
quick end easy to apply, hair perming syatanu

It re volution iias salon panning and, in particular opana up an enormous
now DIY panning market. AH tha tooling bu.bun puMiiud, and the
solutions and product am already In track:

One to haavy Commitmants in our electronics company wa bam.
reluctantly condudad that we do nut have tha necessary time »■

. manege such -an important venture.-

Wa_ would like to retain an inierexr. but era seeking a company, or
Individual; with tha ability ‘to exploit thia unique product: Wa estimate-,
that a working capital of approaching £100/100 la required.

Reply in writing xo: ■"

’ . John Reid, Glwnvitle Reid Industries Lttf
J - Swains Industries Estate, Rochford, Essex

FIXED INTEREST
MORTGAGE AT 13|%

ir Commercial and Industrial properties
★ . For Investment and owner occupation
' 'fc Up to 75 per cent of valuation
it. 15. year. term.

'it No redemption" penalty

Contact 5. A. Fames

Druce House
EST W 21 Manchester Square
1822 I London VV1A2DD
Tel 01486 1252

Property Finance

Choufartons offer companies engaged in house * 8$^

. building, property development and property , _
dealing, afastandcompeliliveafjproachto SjKrrc:

developmeritandbrid©ngfrnaice.

CP. CH 00 LARTCWSONS& PARTNERS LIMITED, Wm]??
30 Ashley Road, Altrincham', Cheshire WA142DW.
UcehsedbqwdMaldiiginstftxittdh. " "

TURN YOUR SURPLUS
STOCKS INTO CASH

D. Rubin Ltd. a large organisation
dealing In all types, of domestic
consumer products. I.s. Hardware,
Toys. Cosmetics. Textiles, ‘Electrical
goods, etc; etc, offers Immediate*
cash for -quantities of surplus
stocks of this nature.

far aqtitck decision contact: -
Denis Rubin: or CUvo Rubin
D. Rubin Ltd. 39 Macdonald Stoat
-Birmingham B5 6TN-
- Telephone: 021-6222222

FINANCE REQUIRED

£350.000 very! short term)- very
high interest and mutual.

- confidentiality observed
Phone 051434 4340 •

J i STMT ■*!•] w 1 1 ; Tl*l l*j ; ;

GOMPUTER SERVICES
. COMPANY

Established eight years with prime
client* requires additional substan-
tial capital to make beet use of
market, potential for software
products. Significant equity - wguld
oa Offered.’ Projected ‘turnover for
the. coming year £1 m. -

Please write in fuff confidence
to Box F3247. Financial Timas
" 10 Cannon Street. ECAP 4BY

SUBSTANTIAL SUM

For two: highly profitable London
top iquatity rests u»n is,. -both beauti-
fully equipped -freehold properties
In jxcaHant. order, .both: in. .same

M ^Serious enquiries to Box F3252
. .Financial Times ..

TO Cannon- Street. EC AP 48Y

projects., Rdol

ENTERTAINMENT
: 3 COMPANY

seeks up to^CRMWO extra capital
. -Projects well advanced
Write Box F325D. Financial. Times .
. JO Cannon Street, EC4P 4BY

STARTING YOUR
-• OWN BUSINESS?
Employed full time? Lack time or
experience- to develop your idee?
Require research, genera

Advertiser is Interested ho ecqulpng
efl forms of outstanding consumer
debt bom second . mortgage* to
smafl unsecured low*. Companies
or book debts acquired., .

Write Box F3260. Financial Jhjaa
10 Cannon Street. ECAP 4BY

EDENBRIDGE

• J1ENT

NEW FACTORIES AND
WAREHOUSES .

•MSI sq ft
AVAILABLE NOW ‘

• Apply: ■

Oxt*f»2375 - 01-2486047

FOREIGN GROUP

Wishes t& dlapooe of' its UK sub-
sidiary" engaged in 'the manufacture
and distribution of safety products.
Turnover apgr&x. £2m wkh 9°od
record of profits. , , _ •

* Write Box F3249, Financial Times
■ : tfl Cannon Street. EC4P ABY

PLANT AND MACHINERY

On th* Instruction* oh ':y j

GKN (re-BKL Alloy* Ltd) (Guest Keen & Nattiefold* Pic)

FOR SALE BY TENDER

ALUMINIUM SMELTING AND
PROCESSING PLANT

IndudiifFi ■ ‘ ■

Aluminum Scrip Shredder, Swarf Pulveriser and Drying
Plant; Dros* Processing .Plant; .Twin oil-fired Rotary'. -
Furnaces; Sloping Hearth Furnace; “ GWB " Electric
Melting Fumace: Holding Furnaces, gas and orMirtid: «
Crucible Furnaces gM^rvd: Ingots Casting CopveVor
Machines; Koken Metal Ladles; Hydraulic Cradles;

Molten Metal Pumps: Magnetic Separation aW Smiting '
Pint; -OR Pressurising Plant; Chlorine Bulk Storage
plane Fume -Filtration Plant; E.O.T. Crap es; .Transformers;
Electrical Switchgear; Portal Frame-BuildiilgExtensioit. .

renters -due on:iWh July IWL • - ;V ■; ■ y

fender Forms- from: *.--L .

Companies with years ending June * December 4 82
, need mourn no longer.

RLE

Here lies ibe body
of our dear friend

STOCK

RELIEF

"who passed away ;
14th November 1980

What shall we do
without him?

For details of several
attractive solutions
_ . just WRITE your name
<m a company letterheading
- and post to meTODAY.

Managing Director, DeptFRM ,

AdkrilL Carr fr Partners Ltd,

Tricorn House, Hagle yRo ad,
Bihnirigham B1 6 8TP

. /We regret no telephone enquiries
dan be accepted)

COMPANIES ACQUIRED
FOR CASH WHERE -

Substantial profits are about to arise or. have
Just arisen from the disposal of 'an investment
or development '

Properties have a low base cost
Contact s. A- Fames

iTT

Druce House
EST ^ 21 Manchester Square
1822 I London ’.VIA 2DD
Tel 01-486 1252

FINANCE

At long last ybur Letter of . Credit, or .firm .order
arrives and you find your bank wont help.

Try us — we are not cheap but we will' help you' fo
make money and we consider business anywhere in
the world. . ■ *

Telephone:

P I INTERNATIONAL
01-228 3913 or Telex 917525 *

LARGE OFFICE FURNITURE
CLEARANCE

MAJOR COMPANY IN VICTORIA
' . ' DESKS, CHAIRS, CUPBOARDS, etc.

. MUST BE CLEARED THIS WEEK : '
Telephone: 01-549 9339

YOUR OFFICE IN
LONDON

Superb Mayfair location. Personal-
ised telephone, telex and mail
Mnrica £28.50 per month or to
include occasional use of offices .
£57 -per month. AM . secretarial/
commercial services available.

. - Address never advertised
■For details te l ephon e Lloyd Adams '

. .. .01-489 0321

or write Box F2629. Financial Timas
■ 10 Cannon Street. EC4P 4BY

CONTROL YOUR OWN
COMPANY PB4SION SCHEME

Profeasional advice. Formation and .
Management of private pension
schemes

BARLOW. CLOWES'-AND '

66 Warofotd Corel
Throgmorton Street,. London, EC2
- Tell 01-638 0063

SUB-CONTRACT TO .
EASTERN EUROPE

If due to nlsh labour cost, tbe manu-
facture of your product, or a com-
ponent Part of It. -Is becoming too
expensive for -you to remain competi-
tive without massive capital Investment,
contact us. . We are ors»niik>e an
Apency whose sole function will be to
sub-contract out those Items, which ,
can no longer be made romp^tJttveiy
In this country. . to .Eastern Europe,
where there' Is cheap, skilled , and a
Mahlv educated .labour force In the
relevant Industries svallablfc' _

Write Box FXZ46i Financial Times
-to Cannon Street,. Voodoo, BC4F 48Y

INVESTMENT OPPORTUNITY
AVAILABLE

la .Office end Catering Service*
Company with 1 - successful track
record now entering, national expan-
sion : pha^s. ideal vehicle for
business start up relief Investment.
Write Box F33B1. Financial Times'
10 Cannon Street. EC4F AST,

DEVELOPMENT

CAPITAL

Companies requiring development
capital of £50.000 upwards
-are invited to contact;

J. M. Haveloch-Jones of
VENTURE CAPITAL
Suite 127.- Grand. Buildings
Trafalgar Square. London, WC2
01-223 4865 - 01-9301670
24 hours 01-978 5593

REPUBLIC OF IRELAND

German company seeks Partner/
Constructor/ Investor for unique
leisure development. Cash and first
phase infra-structure required. Ex-
cellent market (approx. 100 cus-
tomers on books). Immediate work
on site required. Lease or sale to
suitable company required. Contact:

Kevin (Cilrana A Co., "Solicitors
TeL'Moba T7Q

UNIQUE OPPORTUNITY

Due to customer default, severs! NEW
DIESEL GENERATING SETS suitable
for tropical operation are now available
from stock and at very competitive
prices. . .

Basic featreeST 2.100 kw to 2310 kw
1-000 rpm

SO .Hz

, For further Information pteue contact;
P. Khcfwn or G. BbdI. Cockerill Saanbre
S.A. I-410O Serai ng, Belgium. TeL
(32.41) 3B.BOJO. ext. 1331 or 1112.
Telex 4T225 cktcam Ex.

LIMITED COMPANIES

FORMED BY EXPERTS ;
FOR £97 INCLUSIVE
READY MADE £105
COMPANY SEARCHES .

EXPRESS CO. fiEGISTRATrONS LTD.
Epwonb House ,

25-35 CKy Road. London, EC1 —
01-528 5434/E. 7361.9938

MID EAST
MAIUN6 LISTS

Up to dote chan
computer maintained
Details: Imex Ltd ~ ' '
Harman House. Andover Road
Winchester, Hants S023 7BS

UK-U3. business available as vabfcfe
s* participation. Write Box

££257 Financial Times. 10 Cannon
Street London. EC4P 4 BY.

£1 A WOK FORKS ADDRESS combined
phot y hwraepe* and telex under
£4 a week.-. Prastiae o®«» wear stock
Betixanoo. Mtssear Minders Intar-

nattonar. Ol-EZa OB9B. Telex; W1172S.

VECTORS CAPITAL REPORT, 2. Tha Mall,
“P* 1 ®*- Jink between Investment

- fand s and s mall -businesses, la rasters
and. nftweimn ring (02773 7372Z2.

I M VeS T ORf P ABTNgi reqhlred for ISO-
52?. f* rraL 50 ^ tiiare

baats. £1 OOjOQO to £ 200,000 raoulrad.
High ref u rre . HarofordsMre: Teleolionac
oywoar 431.

Wanted to Buy

INTERNATIONAL COURIER *
COMPANY ' .

Phone Mr. jadoon 01-561 9288
PRINCIPALS’ ONLY

BREATHTAKING BARBICAN — Now Com-
plete. Tower flats to rent" unturnUhed
£4.500 to £2 a ,000 (X*. Company appli-
cations welcome. Mob 01-628 4372 or
OT-58B 8110.

YOUR REGENT' STREET OFFICES with a
comprehensive range of services from a
reliable business address A phone
answering to luxury furnUhad__ offices,
secretarial, fax. Xerox, etc. — Cheshxro
Executive Centre. Tel:- 01-439 6288.

COMMODITIES & INDEX. Daffy .advlco
based an profitable computer system.
□Marts: Lambert & Cil. Pwllheli LL53
6RR. ^ -

TVS, VIDEO- RECORDERS M B-G system,
regular reliable supply, required .by
Importer. Sand oflkrs w Marco Services
Ltd.. 1S-17 Swan Street. Manchester
M4 5JJ. UK. Tel: 061 832- 6899.
Tatec 666957 Marcom G. .

■ „

JL 7

tfluj

f

r

-Jl

=71

LEOPOLD FARMER

BUSINESS ADVERTISING
RATES

Per single column centimetre £29.00

• par line £8.50

- Premium positions available (mininmm size
30 colnmn cm) £35.00 per single column cm

- For further details unite to:

JrthnWisbey .
financial Times

lOCmmon Street, London EG4P 4B3T
. . quoting reference JA6 -

All b usiiiessi idvertis ement s are subject to our cona-
tions of acceptance which are available on request

' ' Readers are recommended to take appropriate professional
- a advice before entering into commitments

Business Aquisib'ons
in North America

If you are considering a business acquisition In
the United-States or Canada, Goddard Franklin
can assist by: .

• Identifying suitable investment targets.

• Assessing their profitability and compatibility
with clients’ organizations.

• Determining a fair priceu

• Negotiating a workable transaction.

• Structuring the deal to minimize taxation and
maximize return on investment

• Ongoing business management

Principal Laurence Franklin will visit London,
June 14 through 16. An appointment may be
arranged through Mr. Reginald Franklin at
01-6294167.

ITS GODDARD
II Jaf FRANKLIN
IJJpil GROUP

New York 212/719-5197 Toronto 416/595-0640

Providing management and financial sendees to
corporations and substantial individuals. .

STOCKBROKERS

50% SHARE

We have decided to change oar policy and offer the above terms
to Associate Members. Onr offices are attractive, our staff highly
efficient, valuation service free.

Vh would Eke to hear from London based brokers, individuals,
groups or even, firms interested in these terms.

Please forward replies to: Box No-362, Streets Financial Limited,

18 Red Lion Court, Fleet Street, London EC4A 3HX

AppBctmasInMiniBcale any firms to v*«n Hey donol uirt their repBestobe formated.

SOLE AGENT REQUIRED IN GERMANY

by. major European distributor of electronic wristwatches to
spearhead the Company’s launch on to the German market
The Company's reputation is already well established amongst
major German watch buyers.

Applicants, with a suitable career history, who are well
connected with major retail groups, importers and other users
of ' substance, preferably centrally located in the Frankfurt
region, should apply to:

Box F.3263, Financial Times
10, Cannon Street, London EC4P 4BY

SWITZERLAND

FORE I (a! Efl S can buy apartments Ireahold on LAKE GENEVA, in Montraux
naar Lausanne, or all year round resorts: St Cerqua noar Genova. Villa rs.
Varbiar. Las Djablorats, Loysin. ate. FINANCING 50-70% AT LOW INTEREST
RATES. Also quality properties in France: Apartments in EVIAN on tha
lake, approximately 35 minutes from Geneva, and luxurious villas VERY
NEAR THE BORDER OF GBIEVA. built to your specifications. Advise area
preferred. Write to:

Developer, c/o GLOBE PLAN SA, Mon -Repea 24, 1005 Lausanne, Switzerland
_k— T ^_ 22J6.12 - Telex: 2S18S metis ch

38 FT T.S.D.Y. OCEAN PILOT
Lloyds 100 A1

Mahogany on oak conatrtiction. 6/7
benh. Full see .going equipment.
Radar. VHF/MW radio etc. Full
-Inventory. Complete refit,-
EXLOOO ONO

Would consi der part-exchange
TBj (06285). 23344 evenings
TELEX: 849257 ,

WAREHOUSE in

Ssstfi-West London

Fully secured fus storage
space available. Part of. company
handling service and assembly
of electrical and electronic
equipment so staff acquainted
with need for careful handling.

. MR MARKS 01-737 3677

SUBSCRIPTION/MAIL
ORDER SPECIALISTS -

Wa are a small Company offering
a complete, despatch service. Work
Is already being -carried out for two
internationally - known Companies.
Why not let our experience work
(or ygul You can reach us by
telephone (0680) 200667 or write
to Alan Denton-, World Wide Sub-
scription Service Ltd., Bosehill,
Ticehurst, East Sussex,. TK5 7AJ.

Worried about rising costs?
A NW company selling to iood
manufacturers and wholesalers
offers the servlcee of lta eight
salesmen, - own delivery vehicles
end distribution warehouses to
any company wishing- to develop
their own operation.

Alternatively the company would
be interested in acquiring a food
manufacturer not necessarily in s
similar field.

TEL: 051-709 8607 Mr Sheridan

THERMOPLASTICS

CAPACITY

AVAILABLE

Design, tool making and injection
moulding of components up to
2 kilos weight, together with
assembly, packing and despatch
available. Contact:

M.W. PLASTICS
(LOUGHBOROUGH) LTD
Unit 8. Jubilee Dri ve, Lo ugh bor ough
Laics - Tel: 0503217530

LICENSED
DEPOSIT TAKER

Investor with relevant experi-
ence seeks interest in the
above. Tor initial discussion
please telephone:

(01) 504 2866

MANAGEMENT COURSES

3 r#

Sentor Managers
Programme

Buildingon its we/f-estabMred foundations

Cranfield School of Management's Senior
Managers Programme has been updated to meet
the needs of the rapidly changing business worid
; \AttfchnowgonfhDoisus. . . .

The Svi^prograninre

managers from a wide range efexoanisanonsand
they benefitftom anexehaideof foevrein a
stimulating and dTaHengirigteaming environment
TtieSMPparticuIariy hefts tfie manager who has .
beenafurxlranalspetialistandhasonfysupefidal .

. .. faTOWle^Qfother.hr^^

- concentrates on pdicyissuesat bofh corporate and
functional levels: Thrdugh^ woriongtogetheron real
. and comprehensive problems and familiarising
themselves wirh the language and techniques in
use participants are helped to become more .

. effective member of a .

Dates: Novemberto 17 December 1982.

r To: Mr. FerausPareoa Coarse IbtiB;CianflddSdiDaI of ManraanttC- jl

CisAki.BedfoaiMIM30AL * “

I Td: (0234) 75 1 1Z2. Telex: 626559. H

- PteesendneltnherrtMnaBqncniheaMfaMan^geBftngMnc. H

This cash voucher
entitles your company
to an immediate

75% CASH
AGAINST
INVOICES

Subreatoapproivi

Cash flow probiems?Then cash this!

Need cash now? You've gotitright there on your bocks!
WeiriU give you 75^ cashagainst your invoices- money you can
putto worictoday.You get the 25?t> balance, less our charges, when
your customer pays. And the customer remains totally unaware 7
of the arrangement Post this voucher no wwith your name and
address, or phone us. J.

Confidential Invoice Discounting Limited

SovereignHoage, Queens Road, Brigh too BNl ;'-WZ
Telephone: Brighton 10273J 2 taUTelei: 87382

Food Production Capability

^ Capacity exists immediately far the blending and packing",
of dry food products for bulk use or subsequent packaging.

ML We are able to offer a highly competitive complete

ea-packing service nidi formulation development and
quality assurance of tke highest level.

Facilities also exist for national distribution if required.
Please contact advertiser to discuss opportunities. -
Write Box E32D5, Financial Times, ID Cannon Street, EC4P 4BY. -

NEW PROJECTS?

Can we heip with your , plans for exparuion/rationalisarionl
Professional company with multidiscipline resources offers
Engineering Design Services. 21 years experience on wide variety
of industrial project: Petrochemicals, Chemicals, Food, Dairy,
Breweries, etc<

Contact: Peter Vickers, Pipe® Projects Limited
26 High Street, Hounslow, Middlesex TW3 1NW!

Tel: 01-572 7363. Telex: 935413

DIRECTORS OF HIGHLY PROFITABLE MEN'S CLOTHING
MANUFACTURERS/RETAILERS

Seek Company with substantial funds to capitalise their interests
and are willing to remain under contract as required
Write to Principal, Box F32S9, Financial Times
10 Cannon Street, London EC4P 4BY

GLOBEWIDE

b still in a position to arrange
up to £SfiOQJOUO for

.1, Corporate Finance

2. Equity Finance

3. Term Loans

4. 'Foreign Currency Advances

5. Finance for Property Develop-
ment and Investment

6. Residential Mortgages

Minimum £50.000
Principals only should write to:
Globewide Finance Limited
77 Moscow Road. London W2 7EL or
Tel: 01-727 6474 - Telex: 8953620

OFFICE FURNITURE

40% OFF LIST PRICE
EX STOCK •"

In rosewood, walnut, fight oak
and other finishes
Executive and operational ranges
Complete office furniture T
brochures available on request
London 01-805 2566
Birmingham 021-784 8944 ;

BUSINESSES WANTED

ADVERTISING
AGENCY REQUIRED

Substantial Group of Companies with diversified
interests is seeking to purchase for cash a small to
medium sized Advertising Agency (.recognised or
unrecognised) .

Please reply in strict confidence to; —

THE GROUP’S AUDITORS
FRIEND & COMPANY
Chartered Accountants
113 GLOUCESTER PLACE
LONDON W1H 4DD

WANTED

HIRE PURCHASE OR LOAN COMPANY

OR

BLOCKS OF HIRE PURCHASE AGREEMENTS

to merge with existing business
Please contact:

J. M. Whitney, North Wales Trust Ltd
43 CaHhorpe Read, Edgbaston, Birmingham BIS ITS

SMALL PUBLIC
COMPANY
seeks to acquire profitable
Company with good potential
For cash or shares

Write Boa: G8032
Financial Times
10 Cannon Street, EC4P 4BY

WANTED

We seek to acquire
CONTRACT HIRE
COMPANIES

currently operating car and van
fleets in excess of 100 units
Please write In the strictest
confidence to:

The Managing Director
-COWIE CONTRACT HIRE LTD
- Hylton Road.Sunderfand -
Tel: 078344122

ENGINEERING

.MANUFACTURERS OF DIAMOND
IMPREGNATED CUTTING TOOLS
Home and Export Market
Principals only apply

Write Box 08000 , Financial Times
. TO Cannon Street. EC4P 4BY

MANUFACTURING

BUSINESS

WANTED

Central Southern England
Consideration about £0j>m
Write Box G8004
Financial Times
10 Cannon Street, EC4P 4BY

OLD COMPANY WANTED. 80 to 100-
veer-eld, either private or public
epRUMav. Cash purchase, Tel: Mr.
Collett. 01-839-1066.

PROPERTY

COMPANIES

WANTED

AGENTS RETAINED

Full details in confidence to:
Box GS031
Financial Times
10 Cannon Street
London EC4P 4BY

ACQUISITION WANTED

Wei! established private company
situated in the North West seeks
to acquire profitable business o:
businesses, preferably with estab-
lished and stable management and
also sited in North West.

Write in strictest confidence to
Bot GS 013. Financial Times
10 Cannon Street, EC4p S8Y

REQUIRED

MACHINE TOOL COMPANY •

with substantial tax
losses, preferably in
the Midlands area
Write with tuff details to; - \
Cooper-Parry. Watson, Sowter & Co ■
102 Friar Gats, Darby - Ref: RWL ■

INVESTMENT

COMPANY

seeking to purchase

TRAVEL AGENCY

with 1ATA Licence -
Principals only apply
Write Box G8029
Financial Times
10 Can non Street, EC4P 4B1

• financial. T^es ^e^LJuoe -«^J882;

COMPANY NOTICES

MYOH MEAKIN LTD.

Opportunity to acquire well-known
Pottery business established over
1 00 years.

Situated at Alexander Potteries,
“HI Stoke-on-Trent in freehold premises
j „ of some 1 90,000 square feet

Turnover approx. £2.5m per annum
including extensive export business.
Skilled work force of some 200
employees available.

Cork Gully

Interested parties should
contact the Joint
Receivers Richard Stone.
Roger Hatton, 43, Temple
Row. Birmingham, B.14.
Tel: 021 233 1100

Secondary

Aluminium Smelting

West Midlands

The business and business assets of j. FRANKS (ALUMINIUM) CTO.,
are for sale. A well established business engaged in the activity
of conversion of aluminium scrap into ingots from well situated
modem freehold premises. The business operates from
premises in Cannock, Vest Midlands. Hi mover approximately
£115 million.

Enquiries to die joint Receivers and DetorS-e

I & DJ Con,eyind Haskins Sells

■■■MMMEdniund House, 12/22 NewbaU Street Bumtagham B3 3DX.

FOR SALE

Principats only please contact-

ft Touche Ross &Co.

J. A. Keaford, Touche Ross & Co., Queen Anne House, 69-71 Queen Square,
Bristol BSt 4JP. Tel: (0272) 211622 Telex: 44365

PRINTERS FOR SALE

: Medium sized (£5.5m turnover) Printing Company
: for sale situated in southern England. The company
i which has an impressive profit record - (last year
10.5% of sales) is well equipped withmodem equips
:ment Enquiries are sought from principals only who
"have adequate resources available not ohly to',
purchase outright this sound investment but who can
-maintain financially a business of this size. * ' ~

Applications in uniting should be made to the Advertiser,
Box G8023. Financial Times
10, Cannon Stret, London, EC4P 4BY

TIMBER GROUP

FOR SALE OR AMALGAMATION

Privately owned timber group with own sawmill
and kilns on 10-acre freehold site. Group assets
approx. £1.5m. Enquiries to Managing Director,

Box G8020, Financial Times
10, Cannon Street, London, EC4P 4BY •

PPM

1 1 .CHAPTERED suKVKVCaS

Auctiooecrs.'Va!ue'. ; s'4."Estatc Agent's '

EXETER

STRUCTURAL

STEELWORK

COMPANY

FOR SALE

Freehold, fully equipped
.29,500 sq. ft buildings on
1-57 acre site
£400,000 or offers

Ref.: 1/2079

TELEPHONE: 0392-50441

AL?Hr\' y. C'O K r.uAO c A t ' : : • f >, 2 o T H

DOUBLE GLAZING

NORTHERN BASED .
DOUBLE GLAZING COMPANY

Established over 10 years. Very
hioh level of customer recommenda-
tion. 15 week order book. Current
turnover £4m, profits £375.000. Sub-
stantial cash deposits. Owner
interested In selling parr or whole
— price indication El ,25m.

EXECUTIVE FINANCIAL'
SERVICES

Danlee Buildings, Spring. Gardens

COM

SERVSCES

A well .established . 'Computer Services Company,
whose majority shareholder is a respected public
groups is seeking to expand -its operations by
investing in businesses involved in the following
areas: — ■

X.- . Bureau operations .using Data General ,-ICL,
Hewlett Packard, CTL equipment.

2. Computer contract staff.

3. Minicomputer- turnkey systems.

Retention of existing management would
be welcome

■ Interested parties are invited to send
preliminary details to the .Managing Director:

_ Box GSD18, Financial Times
. , . . lO.Caimori Street, London, EC4P 4BY

Strictest confidentiality toill be observed

- FOR SALE

THE BUSINESS OF SCREEN PRINTING,
CONVERTING AND DESIGN

Screen-printers, creative 'designers and producers of point of sale
display material, including film laminaring, gumming, varnishing,
latex coating, .metal' rimming, board lining and mounting.
LOCATED CHINGFORP. LONDON E4
-Turnover approximately £1.1 million
MODERN PLANT AND EQUIPMENT

Further information:

, A. R. Houghton,

TOUCHE ROSS & CO,

P:0. Box 137, HiR House,

1 Little New Street, London EC4A 3TR.

: Tel: 01-353 S0T1

Golf Course and Driving
Range for sale

ThisattractiVe freehold par 3 golf course and flood-lit
driving lahge is offered for sale as agoing concern. The
exi sting profitable facilities have potential for
significant future growth. via the development of a
clubhouse and bar lor which plannmg p ermission has
been, obtained. '

' Further de fails from NHandley- Jones on 01-63 8 277Z

Thomson McLintock Associates
70 Finsbury Pavement London EC2A1SX

Meat Production &
Boning Plant

BasildotyEssex

A new My EEC approved leasehold plant; 5000 sq.fi.
working area, with chilling, freezing and blast freezing •
facilities in a-modern industrial estate.

Further details fromLD.B. Bond Esq., FCA. Deloitte

HaskinsSeils

■PD Box 207, 128 Queen Victoria Street, London EC4P 4JX.

FOR SALE AS GOING CONCERN

Manufacturers of factory built accommodation units
' bas£d in North Midlands. Modest sized company
' with- 24 employees. The company is based upon
engineering.activity in a modem leasehold premises and
has an expanding -order boOk._

Annual turnover approximately '£734,000.

Up

Air enquiries to:

THORNTON BAKER •

Eldon Lodge, Eldon Place. Bradford
West Yorks BQ1 3AP
Tel:. 0274 34341 . Telex: 51611 TB BFD-G

Ret trance ■ AVF/8X406

FOR SALE

Well established Injection Moulding Company in Leicester area. Modem
compact factory on low- rentel, turnover -approx. £125,000 ps. Oppor-
tunity of expansion . for energetic- purchaser with management skills.'
Machinery £20.000 (dealer's valuation) excluding moulds. Raw materials
end stocks valued at EIS‘,000 approx. Business could be relocated.

' PRICE FOR QUICK DISPOSAL £60.000 ono
Fof further details contact Box G8021
Financial Times, 10 Cannon Street; London EC4P 4BY '

CHRISTIE&CO

RECEIVERSHIP SALE
SHOP FITTERS

EXHIBITION & DISPLAY
STAND
IFAG

Established 13SS - Near Heathrow
Equipped Factory Premises
13.000 sq ft

Smell Office Block 1,340 sq ft
Valuable Lease

OFFERS IN EXCESS OF

£254)00

Apply: 32 Baker Street
London W1M2BU - Tel: 01-4864231

NEW COMPANY

; Providing use of computer word
■ processing.- Photographic proces-
sing, sand blasting, pottery, etc,.
' needs equity to expand concept.
i Probable start-up status.

For further details:

Phone 01-445 0033

ESTABLISHED

MACHINERY IMPORTING
COMPANY

FOR SALE

Substantial freehold asset
Possible tax losses available
Contact Box G8019, Financial Times
70 Cannon Street, EC4P 4BY

WINE

BUSINESS

A' company with various . other
interests is prepared to sell its
fully equipped wine bar (2,006 sq
ii) end wine & spines cash and
cany (2.000 sq ft). Situated Central
London. Successful arid profitable
going concern. No liabilities to be
taken over by purcheBer.__Subsiari^
tial sum required. Please reply to:"~
Box G302J, Financial Times
10 Cannon Street. EC4P 4BY

. ELECTRONIC
HOBBY KIT
MANUFACTURER?

National and International '
customers

Own product and Japanese
franchises. Sales £200,000 ps-

Write Box GB014. Financial Times
70 Cannon Street. EC4P 4BY

TRAVEL AGENTS FOR SALE
7 Branches in London and Provinces
IATA and ABTA licensed
£j}-£4 million turnover -p.a.

Quick sale — serious purchasers apply with offer to

-Box £.8002, Financial 'Times, 10. Cannon Street, EC4P 4BY

RETAIL GROUP
FOR SALE

Attractive NW company with 13
shops plus warehouse, rectory and
offices. Retailing books, cards.'
fancy goods and confectionery for
sale at nett asset value. ■ - - ■'

Wrifa Box GS077. Financial Times
10 Cannon Street. EC4P 4BY

the chairman of
SUCCESSFUL NORTHERN
MANUFACTURING COMPANY

is retiring and wtehw to glfer far-ieie'.
this private limited Company with tuU
order book. Currently manufacturing
vinous type* of Scat .Trim lor the
Automotive industry and substantial'
Ministry of Defence contracts. Also-
1.75 Acres Freehold Factory.

Please canon the- Managing Director.
5** 4.7918, Financial Times. 10.
Cannon street, tarpon EC4P‘4BV,' •

for sale

West Midlands

An old established builders' mer-
chants ' with- -freehdid premises
with room to expand ?or relocate
to another .Freeh did site 1 with
D.I.Y. potential and excellent
office HxomDio.datfan; :

Write Box G80T0. Financial Times
■ -10 Gannon Street. EC4P 4BY

COMPUTER

bureau ;

.10 YEARS TRADING
Turnover £Jm+ - Profitable
- 100% Equity- available •
Principals only please

Write Box GdOS. Financial T imes
10 Cannon Street. EC4P.4BY

. BUSINESS ^OR. SALE , -
■N EDINBURGH V..

wiLh-or withqutjarge-pramnea-tn
.City Cameo

. BUILD.ER.S AND .1 .
MANUFACTURING- JOINERS

plenty of scope for expansion
Write Box.66TOi Financial Times '
“ 7D Cannon Si/eW; EC4P.48Y ' . T

FOR SALE

FORD RETAIL DEALERSHIP

EAST MIDLANDS

Long established dealership unril-
s misted near induatrial towns, ideal
for development of fleet, business.
Busy forecourt and workshop with
MoT facilities. High profit potential.
Freehold £80,000. Stock and assets
at valuation. Goodwill ndgouaWa.
Write Box G9011. Financial Timas
70 Cannon Street, EC4P 4BY

FOR SALE

SMALL PUBLIC COMPANY
Extensive agreed capital tax
losses. Cash assets. Controlling ■
• -imprest available

Write Box G8026
Financial Times

10 Cannon Street, EC4P. 4BY - ■

. BUILDERS MERCHANTS
• YORKSHIRE
. - - T/O £3M

'.Further dam its from owners’ agents
1 . PARTRIDGE ft 'C&

. 24 Woodman Way
Beckenham, Kent i 01 JB0 3314

By Order of the joint Receivers & Otbecs
,re: Alpine Sports Group .

OPPORTUNITY TO ACQUIRE

Leading .. ..

SPORTS EQUIPMENT RETAILER

Established Twfipg Lotarions *

London; Br^floo, Muidioter, l writ, *
Edtnlwtgb and Glasgow

Good sized units .

1981/02 Tiniiover: £5M+

Offers considered for^Bwfngss

or -indjvjdual focatiow.

.-Full details from: . .

EDWARDSYMMONS

S 6/62 WfhorrRoad, London SW1V1DH

01-834 6454 • Telex; 8954348

FDR SALE- •

AUSTRALIAN CONS^HIONCffll^

construction series enqtaieslrom cfl»erpasonsviahagsfi&«
Interest in purchase.

Tliecumpany is located in Queensferel, AusfrafiaandoperalES

fawari contracts are held farASSS million on Qwenanentand

fifl million, eflocbirimgfrediokl lancfaid btfldfogs^iHtEdinwdl
located aea-The laid and teaWinescorfd beacquredsutSectto

Wittenenqt»iessfioddbefbnratJedto:AiUDme,

Binder Hamfrn, 8 St Bride Street, London EC4A4DA,

By direction ot the Trustees

UNIQUE OPPORTUNITY TO ACQUIRE THE *
LONG LEASEHOLD INTEREST AND ASSETS OF THE . '

WESTOVER ICE RINK

A1SO THE. FREEHOLD OF THE.

PLAYHOUSE & GALAXY THEATRE/CINEMA

IN BOURNEMOUTH

Old Library House, 4 Dean Park Crescent. Bournemouth
Tel: (0202) 21821

WELL RUN SOUTH COAST COMPANY

FOR SALE

- Products sold are of oar own manufacture'

THE COMPANY OFFBIS:

1} Its own distribution throughout the United Kingdom
2) Foll/strici management control
3> Expansion and growth with e full order book
INCLUDED ARE:

•1) Freehold units

2) Other assets

3) Sizeable cash deposits at bank

TURNOVER:

Currant year 1881/B2 £580.0004 with good profits
Projected year 1982/83 £1 .1 minion, with good profit margins .

This- it -an- Ideal opportunity, for a company wishing so diversify, or. lor
a company that has/raqulres a successful expanding portfolio
ASKING PRICE

Offers an £875X00 (Eight Hundred and Seventy Five Thousand Pounds)
Principals only need apply (no time wasters please ) to rh«-
Managing Director ; Box G8Q22. Financial Times. TO Cannon St, EC4P 4BY .

The business and assets
of a modern .

BLACK IRON FOUNDRY

Occupying a substantial freehold site capable of -division, in the
Manchester area and currently employing- 115 direct -and indirect
staff. Weekly night-time melt opacity from 3 *ear old leased
electric furnaces of approximately 230 tonnes.

Principals only repiy in confidence for further details to:

Sox FT/750, c/o St Jama's House
4/7 Red Lion Court, Fleet Street, London EC4A 3EB

FOR SALE

LONG ESTABLISHED; HIGH QUALITY, INDEPENDENT CAR
AND LIGHT COMMERCIAL CONTRACT HIRE AND
!£ASING COMPANY

Very -competent management team available plus ample corporate
funds to support growth and possible diversification into allied'
fields. Ideal opportunity for. large company' wishing to diversify
and/or cut costs on company cars, financial or investment institu-
tion, or similar trading company.

Please write for initial details to:

Box GB028, Financial Times. 10 Cannon Street, London EC4P 4BY

ELEGTRIGAL

WTTTTlTMirnT?

Established Central London firm,
with own freehold offices and
stores, good order book, turnover
approx. £800.000 pa. ideal as sub-
sidiary for building contractors or
as comptementaiy activity for
mechanical engineers.

- Principals only should write to ■
Box G8076. Financial Times
10 Cannon Street, EC4P 4BY

PROFITABLE

AIR-CONDITIOMING

CONTRACTING

COMPANY

. FOR SALE - * ,

Established 20 years, turnover
£6/700.000 pa, with regular service
and maintenance' operation, from
freehold pram isos ' in South London.
Integrated takeover possible.

.-Only Principals considered
Write Box G8Q12, Financial Times
10 Cannon Street. ECAP'dBY '

OLD ESTABLISHED

COMMERCIAL
VEHICLE 6ARA6E
AND

HEAVY RECOVERY
BUSINESS FOR SALE

7 bay workshop 6300 sq ft, B
years old, situated East Midlands
on 2 acre site between A I and
Ml on major trunk road. Would
also be suitable as haulage or
coach concern. Offers around
£250,000 plus. SAV -for property
plant and goodwill.

. For further details write
Box GS007, Financial Times .
10 Cannon Street. EC4P 4BY ..

NORTHERN .

FROZEN FOOD :=
BUSINESS

RETAIL & MANUFACTURING
£1m plue tumovar and consistent
record of sales and profit growth.
Genuine reasons for safe.

Write Box G6D30. Financial Times 1
10 Cannon Street. EC4P 4BY

BUILDING COMPANY
FOR SALE ;

TAX LOSSES .
AVAILABLE :

Write Ban G.73S8 '•

' Financial Times ■ J:.

10 Cannon Street; EC4P 4BY

JEWELLERY

DISTRIBUTdRS

WITH £450JW» TAX LOSSES
FOR SALE

No assets or liabilities other
than tax losses
Write Box G7988. Financial Times
. 10 Cannon Street; ECAP 4BY ■

ABINGDON-on- THAMES

DETACHS) STONE

VICARAGE

Self-Catering Units 1
Plus very profi able outside
catering business} '

' Details -from:

AOKJN

10 High Gtrestl Abingdon, Oxon
. Teir (0236) : :

RAND MINES, LIMITED

{Incorporated m .tfre IteteWlc of Sootfr Outlay

A Me m b er ot the Aim Kind Group"

DIVIDEND DECLARATION: . ; •

KYyooiiuiTzi'cirfr gold huriiiN’S oomtpamy, . umiicp *- .l V

. Ndnca is hsruy «rvcN : net OMtond Nsu. 7S of.90 end par sMr«

has bean, declared In Sooth- Atrjon cuironcr. na.a find dMdend la mncct or
the veer ending 30tb June. 1982, pavaHe » members rtghbgtd M> the books
of the- carnneny et-ttf cioire efbusinen an 25th June. -1902. -. " 7

Ttra roBfeer' ol members wili bo dosed from MCh 'Jetra » -'4th Juh>,'^B8Z
mchislve. .end dividend warrants wHI ba- posted on or above 39tfr Jiriy,- 1982.

TM rate of eschenoe et ’wWeh tbe dhrld^uTwHl tie eow ve rted . Wp United
Kfiwdom currency Tor pavment by Hie Hutted Ktnpdom fteo titfrair sad Ttumdar
Agents wHI be the tetegraahlc trsnsrtr rate-vt-exdwiga iratweeii Jefnomsbcre
and London ruDno on tee Aral btwnen day after 2Ste June, . fgaz «a wkfch
loreKm currency deelingsaro taKuacted. '. .?;■ - • ' ~:>

Where aoolicable. South J African eotKesfdepc. tea rehOUerd , . W- of : JS%
win be deduced from the cKeUnad. '

Tire rail conditions of MtymeRt of fch., dMdend miy' be fu m c ct ed ir or
obtained from the attut, of - tee -company in Jobwmcsbnro or. in ter Untied'
Klnfldanr. - - . ; ■' .

miRUAW BOdDSWORT- PEtei UMtrtP •

EAST KAMO PROPRIETARY pUMip.. LfMITID

The boanb-or dfeeaen tbeM cumuante tjera .i
dividends. : fdr the heir- year to 5Mfr June. 1982. . .

.dewed’ not to dectanr

Rtolst gwf .aflto H .: ;

15B» F h *P r -__ - ' . . .

83 fox Street,

johannestMirg 2001. _ 4 .

(P.O. Box fl2370, Marehafitavnir 2107L

'United Kbmdom ReoMrsn rad Trpnafer Aieats)
Charter Consolidatsd P.UC,

P.O.Box 102. ■

Charter HOU««r . ..

Park Street. . .. . :

• - firOrtlir'.DfdwSunfi

■ V. M, MUftTON
sAdinMcbBtfvr Manager and JSeowavy
•-Oli0M.hr tee «Wied Kh w fci xn
. -. Osamr XoosolWatMt P.LCL
. . 40 . Holbom Viaduct
■ " -London -EC1P 1AJ"

Keut TN24 BEQ.
,7th June. 1982...

CONSOLIDATED CQMFlANY BULTYONTEW ftKNE, UMVTB). ;
G RIQllALAND - WEST DIAMOND P4IN tNGCOMPAMY, ■ \ •>

• DUTOrrsPAN MINE. uMlTH> --lr '-i •

(Both Incorporated m pie Republic of . South Africa / .,

DECLARATiON OF DIVIDENDS f " ; .

. NOTICE IS HEREBY GIVEN that th* «flroctont:of the .abOtefScnthMieri
companies have declared dhddend* tor tee half-year endlne 30iti Juno. 1982.
payable to shareholders registered In the books of tee respecter*- comparte* on
25th Jane. 1982. The dividends, paw been declared Is Ot*. currency or One
Republic ot South AMca. ;

Che compartJet transfer scctetartes bv Klmberlcy or hi tee United Klesdttsi 00 or
belbre 25th June, 1982. -. •

The effective rafe of nop-roifilcnt sfwrabbtders'rtxX l» -|5 pcr rent- ''

.The dividend la payable suhlect -to condmone . which . can -be.^ 'I n spected at
tee bead and London ofltcas of tee companies and also at once* of tee
companies' transfer secretaries- Jn Ktmbtrbjy and the United Ktegoom.-

Consoffdated^^ Cm rip B rty ^ Bul t foii te i i i

Griqualand Wfc» Diamond Minins
Company. Outoitspan - Mine, Limited

- ... . By order of tee Boards

• For and cm behalf of

ANGLO AMERICAN CORPORATION - OF SOUTH' AFRICA LIMITED

London Secretaries
• J.--C.-GB1ENSMJ1H

London oMpk.

«0 Hoibbrn Viaduct .
Londqn ECIP 1AJ-

8th June, 1882-

Ohci''tf Hutted

Kbmdom 'T
Owftv^

lig

AFRICAN AND EUROPEAN

- INVESTMENT- COMPANY

- . . - , LIMITED .

^Incorporated, m W Republic :of
. - South Africa)

PREFERENCE DIVIDEND. No- 68
Dividend Nov BE of throe per cent
tar the six months ending June 30.
1982. been dechred payable on
Aosirst 10. 1982 IB holders, or the
Ox per. emtt cbmuUtfte prdwcnce "
stock rosmered In the books of the
company at the close of business pp
June 30. 1982, end to . persons

present] rw coupon No. 89. detached
from stock warrants to beeror. A
notice resardhis payment of the divi-
dend . «» 'coupon No. . 69 • detached
from stock warrants to bearer will be
puMLsbed In tee Press by- The LohA :
don socrotp(i« of the ■ company .on .
or about June 18 1982.

The preferen ce stock transfer
reamers and rualstyrs . of. stock-,
holders- will be dosed from July 1. 1
1982 to Jely 14, 1982. both days
Inclusive, and w ai t ids will be
posted from the Johannesburg and
United- Kingdom ofhees of tee trans-
fer secretaries -on -or. about August
14. 1982..- Registered fte fe ii tece

stockholders paid, from tee United
Kingdom win racefvte ' the United
Kingdom .currency ewivatent on July
5. 19SZ 'of the rand value of the divi-
dend (less appropriate taxes). Any
such preference stockholders may, how-
ever, elect to be paid In South African
correnev' BroTWcd'tevt tee req u est It
received at the offices of tee company's
transfer secretaries on or before June
M. 19b£T\_ _ . .

The effective] rate " of non-resident
sturehoidara' tax Is 15 per cent. -
The dividend Is payable subject to
conditions which can be Inspected .at
the heed and London offices of the
company and ■ at tee offices , of the
company's - transfer secretaries. Con-
solidated Share Registrars Limited, 92
Marshall Street, Johannesburg 2001
and Charter Consolidated P.L.C..
Charter House. Park Street, Ashford.
Kenr TN24 BEQ.

. . By order of tee board
ANGLO AM ERIC AN CORPORATION
‘ OF SOUTH AFRICA UMITED-

Secretaries

per: W. Q. NICOL
. Divisional Secretary

CbarterXoaiOfldffM PAX.
-- - PX. box 102

Cbarter Hodse, Parle Street :
Ashford. Kent TN241EQ

. . NOTICE TO HOLQEKSL OF
EUROPEAN -£rE*OS [TART RECE1 MS
CEORsJ IN- ,-

NtSSIN FOOD PRODUCTS CO. LTD.

Tfie' Orriliraxy General Meetfos .- of
shareholders of Ntatln Food Product, Xo*
Ltd. win. be. heM on June JZSw IMA ",

' AGENDA ' - •

1. Approval ' of Financial s a tewro raM
aDDrourtatiofT of YetaliHd carol run
-proposed" by ;Boant of . Dbrtcecn Wr
the Fiscal veer. ended March Si. 49S2.

2. Partial amendment of tee- Articles of
- '. IncoromthNi. . • ••

3. ' Election of two Statutory A udito r s .

4. . .OasslAed' . allocation of rwnu iteration
.amounts b e twe en Direct ors and
_ statutory Auditor* Croup*.

5. - Pavment of Death Allowance to the
. late : Mr. . M._ Tooamt_ who - was .a

Statutory Auditor. . \.- r

6 . - Payments of ftedranrent Alkswattce tO

ratlrsws two Director*. .

1 - (Full text of- Notice 4s available et
aObanJc. ftLA., -LotxhrO . .
Shareholder* who wish to exarctse their
voNns rights mtisr deposit their certfficatra
not later than' June 25 , 1982. at tee
offices of tet Deoosttanr. Cffibank^ NA.
336 -Strand. London, WC2R 1HB or ‘tee
A sent. CiMtjaok .; CLtocembourg} . SA. 18
Avenue Marie Therese, - Laxembouro.
tuofftear with taBtractem ImHcMub. the

***** aiTKSik. tedCf London:

June 8. 1982 ' ' "

Hdad oncer
44 Main Street
Johannesburg
20001

lone 8. 1882.

London Offices: -
40 Hnlborn Viaduct
London EC1P 1AJ -

COMPAGNIE FRANCAISE
. DES PETROUES -
- Head Office: ■

S rue Mich el- Any e. 7301 E Paris
R.C5- PARIS B S42 051 180

NOTICE OF

SHARE HOLDERS' MEETING

ir.^rar^fl

LEBMI INTERNATIONAL INVESTMENT^.

• : •" -.

The Interest rate . applicable to the
respect ot tee six monte

SS2W.&2 iSSiL" 1 .

-Notes will - be paid on Tuesday -7th

SS5?W ,Ml ^ t «

SANK UU^i ™ust a^pANr

- Principal Paying Agent •

U.S.$50, 000,000
Hydro Quebec
Debentures
due 1.7.1 978/93

Debentures covering ■

. iJS$2^00X)00 have been
purchased on tfie market to
satisfy die Purchase Funddo*
.1st July 1982. -

BOND DRAWMGS

CORRECTED NOTICE . f -
■notice OF REDEMPTION u
F loating -Rato Noted Due. 1985 '
PR1VREDNA BANKA ZAGREB
Third Redemption Put V.
July 12, 7982'
tallowing numbers of the note*

B.

A

Si

lit

cl

K

m

m

a

19 - '

Financial Times Tuesday June 8 1982

THE ARTS

London Galleries

William Packer

An Israeli
. painter and
a Wild
West show

There are certain things we
have come to expect to find in
the wbrk of the contemporary
artist of whatever kind; but
quite bow reasonable it may
be to hold those expectations
we seldom pause to ask. Is a
thoughtless expectation after all
only a prejudice, or a reason-
able prejudice perhaps a re-
spectable critical hope?

We may take, for example,
the related issues of Develop-
ment and Consistency. Why
should it be that while the art
historian, in seeking to confirm
a doubtful attribution to some
artist of the past, will look for
points of consistency in such
things as style, technique, com-
position and iconography, even
across the entire span of his
artist's lifetime, we are inclined
to hold just this quality against
the artist working now? The
ideas are static, we say. the
technique ton safe, mannered
and predictable, no chances
taken — there has heen. in short.
no development, no p-'rress;
and so it is we cast our dnuhts
upon his modernist credentials.

Is it so simple? Well. no.
There are things to be said for
both sides; and the latest
exhibition of paintings and
drawings by the Israeli artist,
Axigdor Arikha fat Marl-
borough throughout June l
seems" to say them rather well.
If the Consistency can be left
to assert itself, as ultimately
it will, why not trust the
Development to do the same,
and simply take the work as
it is?

Arikha is clearly a good
painter, in command of his
medium, confident and effective
in his imagery. His pre-
occupations are with the figure,
the portrait and occasionally
the nude, and with the land-
scape. and the still-fife, com-
posed modestly enough from
the mundane impedimenta of
studio life: tubes, bottles, pots,
fruit and veg.

The paintings themselves are
honest enough and unpreten-
tious. and clever, sometimes
very clever. But they are also
manifestly consistent. and
where one is admirable, two
are fine, three are beginning to
set a little dull, and over them
all a pall of complacency just
begins io bear down.

If it is a Heresy of Modernism
that avert development should
be made clear, so it is a false
reading of the broader Western
Tradition, into which Modern-
ism of course falls, that con-
sistency is everything.

We see Arikha doing again
and again what he knows, and
we knew he can do very well,
and we watch him as we watch

Avigdor Arikha — self portrait

the gentleman with the three
card trick, with surprise and a
certain detached pleasure, but
only at first A more ambitious
conjuror — and painting is
always, among other - things,
terriffic sleight of hand — would
dare to lose a trick or two.

And now for the Wild West
Show, and if not exactly the
elephant and fche kangaroo, at
least all the cowboys and
Indians you could possibly wish
for, and buffalo, bucking
broncos and the U.S. Cavalry
besides.

The exhibition “Painters of
the American West” (at the
Mall Galleries until July 3) is a

cult of The West, and whose
effect upon popular imagery is
likely to be felt far at least as
long as films are made in
Hollywood, it also makes very
clear that the influence of the
West, whether through a
direct experience of its land-
scape and its people, or at a
remove as a generalised
romantic inspiration, is perhaps
stronger than we bad realised
before. It must certainly be
taken into account in any'
serious 1 reading of American
art in this century.

On the one hand we have
those cowboy painters — and it
is fascinating to see by direct

‘Ail the cowboys and Indians
you could possibly wish for,
buffalo, bucking broncos and
the U.S. Cavalry besides’

of Henry Farney, Frank John
son wonderfully schizoid with
his Trading Post at Night one
of the most discreet and sym-
pathetic pictures in the show,
and his Raiders of the Dawn,
an image of pure cinematic
kitsch: shades of Glasgow and
Henry and Hornel. perhaps, in
the work of Nicolai Fechin and
Robert Henri.

Finally, a sad and reluctant
duty, for it is still hard to
accept the fan that occasions
it: Birgit Skiold, a painter, a
print-maker of distinction and
finesse, and latterly a photo-
grapher of Increasing stature,
died suddenly in hospital a
week ago. Too many of her
friends did not know how ill she
was. let alone in hospital, and
still shocked themselves, their
hearts go out to Peter Bird, her
husband.

selection of work from the
Anschutz Collection of
Colorado, which is - just so.
specialised, and in recent years
has been sending such 9bows
around the world, all the way
indeed from The National Cow-
boy Hall of Fame in Oklahoma
City to the Shanghai Museum
of Art (this particular visit is
sponsored by Mobil in support
of the World Wildlife Fund.

It is a very mixed bag
indeed, with so strong a theme
to over-ride all other considera-
tions. but is nonetheless enjoy-
able and intriguing for aH that
There are some wonderfully
bad pictures in it and many
curiosities, but also many sur-
prises and a great deal of real
interest and even importance.

Certainly it is more serious a
show than prejudice might
allow: and while it is more than
generous to the genre illustra-
tors who first stoked up the

comparison bow relatively un-
distinguished Frederick Reming-
ton is amongst his peers, artists
like Maurer. Russell, Scbrey-
vogel and Koeraer: on the other
we come almost up to date with
an abstract expressionist work
by Helen Frankenthaler (Wes-
tern really onlv by virtue of
its local title), and latest of all,
a Hockneyesque (that is the
Hockney of ,.20 years ago)
Indian wrapped in the Stars
and Stripes, by Fritz Sdholder.

The effective climax to the
show, however, comes a little
earlier, just after the landscapes
of John Marin, Marsden Hartley
and Stuart Davis, and the
exuberant festival rodeo of
Fletcher Martin, with two of
the smallest works of them all,
two landscapes from the 30s
by Georgia O'Keeffe, and most
especially her gentle yellow
ochre church at Hernandez in
New Mexico, with the low hills
behind dotted sparsely with
green.

And in between are many
treats: the modest objectivity

The art world has suffered an
irreplaceable loss: Birgit came
to this country from Sweden
30 years ago and made it her
home, and ever since,
modestly and idiosyncratically.
she set about fostering the
crafts of print-making, her first
love, and helping as many
people as possible to develop
them, and through those pro-
cesses, themselves.

For 20 years now her Print
Workshop in a basement in
Charlotte Street has been the
focus of her activities, and as
such a natural meeting and
working place for artists of all
kinds from all over the world.
Her internationalism was as
deeply felt as it was effective
and she will be mourned across
the world, most especially in
Japan, where she had done so
much in recent years.

Artists die, their work
remains after them, and hers
too will last. I intend no reflec-
tion at aH upon if in saying
that in her particular case, her
truest memorial, if only it can
continue somehow in the spirit
in which she ran it, would be
her beloved workshop. In the
years I knew her. she helped
me, like so many others, more
than I can say. or even know.

Arts news
in brief

Barry Humphries (also known
as Dame Edna Everage), a
keen book collector, will open
the 24th Antiquarian Book Fair
at the Europa Hotel, Grosvenor
Square. London W1 ibis morn-
ing at 11 am.

Mr Humphries’s many biblio-
philic interests include literary
curiosities, late 19th century
■decadent’ poetry. Gothic novels
and Edwardian ghost stories.

A feature of the fair will be
a rare Victorian proofing press
which visitors will be able to

watch in action and take away
a sample of tbe printing.

The three-day fair — June
S-10 — offers for sale some
30,000 items on every imagin-
able subject, from religion to
railways, bridge-building to bee-
keeping. and "is a major attrac-
tion for thousands of book
lovers of all ages and tastes. It
is open daily from 11 a.m. to
8 p.m. No admission charge.
(Illustrated catalogue £1).

+

The Poetry Book Society’s
Summer 1982 Choice is The
Passage of Joy by Thomas Gunn
and the two Summer Recom-
mendations are: Night Cries by
John Cassidy and The Memory
of War: Poems 1968-82 by James
Fenton.

Each year the Poetry Book

Society selects four outstanding
new books of poetry as its sea-
sonal choices and the recom-
mendations are those which are
also considered to be of particu-
lar interest to society members.

Barclays Bank, which is planned
for the spring.

Kent Opera plans three new
productions and three revivals
in its 1982-83 season. The first
new production is The Beggars'
Opera, in the Britten version,
which opens at the Aldeburgh
Festival on June 11 and 12.
Fidciio, produced by' Jonathan
Miller, starts the autumn season
at Tunbridge Weils on October
28, with Teresa Cahill as
Leonora; and the other new
production is Don Gioranui, a
first Kent Opera sponsorship by

This Sceptred Isle, a photo-
graphic exhibition on Maritime
England, will be at Tbe Royal
Photographic Society's National
Centre of Photography from
June 11 until September 9.

This exhibition will show
some of tbe facets of maritime
England as it is today, as it was
140 years ago, and as it has
been in between. Inevitably,
ships and sbipplng make up a
large part, but an effort has
bees made to show something
of the people who live by. on or
through the sea. The earliest
picture is from a photograph
taken in 1845.

The Kirov Ballet/Paris

.7 1

Clement Crisp

A dignity
of expression
to delight
the eye

The Kirov Ballet is coming
to the end of a long. Paris
season which has for me, as it
must for many ballet-goers, re-
affirmed the supremacy of the
troupe as exponents of the 19th
century classic repertory. Look-
ing at the Kirov even on a bad
night — and non more taxing of
one’s admiration than when
Oleg Vinogradov’s Le Revizor
banged about tbe stage— one
senses tbe sustenance the Lenin-
grad dancers draw from their
impeccable training. There is
no step but has an integrity, a
dignity of expression to delight
tbe eye. This season has been
a tiring one. and some of the
freshness I noted at the opening
performances has gone, yet the
excellence of the corps re
ballet is never in doubt, nor
does the- commitment of the
artists to their task ever falter.

To get the worst over first:
Le fferizor is Vinogradov’s view
of Gogol's The Government
Inspector. By taking the out-
lines of the plot, but finding
little to replace the satiric edge
of tbe play’s text, Vinogradov
has produced a hectic and sim-
plistic pice whose hysteria
seems relentless, but whose
inventiveness rarely extends
beyond the obvious polical slant
of “ peasants good; civil service
bad." Coreograpby amounts to
frenetic gesture, racing, leap-
ing, crawling by the self-seek-
ing functionaries, so wildly
caricatured that any probability
in the drama is lost There are
bright production ideas — the
transformation of degraded
pea sandy into picture-book
country folk is amusing, with
girls instantly turned into
Petrushka nurse-maids by
means of a continuous panel of
frocks which they hold in front
of themselves— but the sum
effect is of febrile activity which
does not disguise the ahience of
Gogol’s genius.

There is an odious, clattering
and synthetic score by Alex-
ander Chaikovsky; the tiresome
conceit of dancers impersonat-
ing letters (shades of the Pen
in Lieutenant Kizhe); and the
appearance of Pushkin (I
assume this is the gentleman
who plays a trumpet at the
ballets end) and of Gogol, who
stares at us at curtain-fail as a
battery of lights blaze into the
auditorium and the government

officials— and we, too?— lose
social masks and pretentions.

But there remains tibe com-
pany's performances, which are
of superb intensity, and especi-
ally.' that of Vadim Gutyayev as
the imposter Khlestakov. He
gives a stunning interpretation,
tbe embodiment of opportunist
charm, of physical and
emotional dash. To see him,
in a dream sequence, involved
in mock-romantic dalliance with
the daughter of the town
governor, and then watch him
flirting with her -and her
mother (a sparkling impersona-
tion by Ninella Kurgapkina) ; to
see ttim intoxicated with Ms
power over crawling officialdom
and forcing the governor to
kneel, with a gesture of regal,
tipsy delight is to Witness rare
.theatrical art Elegant brilliant,
witty in step and economy of

the staging made by Elsa'
Marianne too Roses for tne
Leningrad Maly Ballet, here
aggrandised with some loss ot
dramatic point and more serious
loss trf stylistic nicety. The first
act looked like For from
Scotland, the second act nxe
Far from Boumontrille tor , even
if it matters not at all that tbe
crofters are bannily outfitted
after the style of. French
theatrical prints of the 1830s by
Eugetoann, it matters a great
deal when Baurwravtiiian har-
mony of proportion is distorted
by a dance manner as grand and
big as that of the Kirov— the
sylphs in Act 2 bursting the
confines of Bourn on vi lie s

gentler leg-action with huge
extensions.

Madge (called Medge in the
programme, misprint indicating

about it: she within

intensely, thou^n - ■ ?5rap Bac

the confines of g ; ^ grace
manner. The _ v . eC me&s -P*
her dannns. '- e M d3n

her playing are a j - ^je
lightness. purity z

is exquisite. , b , ab o«t

the Kirovs LiiCiic rcporte d

about which vests

enthusiastically V's^tin:: nt&
«fl. If the first *-J-‘ i s
looks shabby an.- ,g L eSC ei!esL
throughout is •fl" * ^eal

Irina Kolpakova
‘ The lilt and grace
of her dancing,, the
sweetness -of her
playing, are a- joy' 5

means, with Sir Alec Guinness’s
polish as a farceur and Leonid
Massine's clarity of' movement,
JSulyayev is Gogol's hero to the
life.

The Kirov is also presenting
a double bill of Fokine’s
Chopiniana (Les Sulphides) and
Bournonville's La Sylphide as
a confrontation of romanticism
at first and second hand. Alone
among ballet companies the
Kirov dances Les Sylphides by
divine right. The text they offer
under Fokine's original title is
different in several instances
from the one we are used to.
At moments it looks as if the
choreography has slipped off
register from the music; some
groupings owe more to Vaga-
nova (who gave the staging its
final form) than to the Fokine
of 1908; I have sera better
casting of principal roles and
less blatant lighting in the
company's London seasons, but
nothing can detract from the
sensitivity, the aH-pervading
lightness and freedom of the
style, the way in which the
dance is impelled in sweeps of
movement, blossoming on the
night air; and in Yelena Yevte-
yeva the first ballerina role has
an eloquent freely-soaring ex-
ponent.

The La Sylpkide is very
curious. It is, I would venture.

her altered image as a green-
faced Rabuki demon) has lost
the scene in which she prompts
Gum Into proposing to Effie;
Effie, as played by Tatiana
Goutnba would be happier
tossing- a caber than playing tbe
gentle, hapless fiancee. The most
intribuing aspect of this
Sylphide was the way in which
tiie company played the opening
scenes with a . full-blooded
passion which, very unlike the
Royal Danes' naturalistic
authority in mim e, suggested
the melodramatic style of the
boulevard theatre in the 1530s,
bold and compelling.

It was this directness which
gave interest to Sergey
Berezhnoy's James; it also
accounted for something of the
grandeur of Irina Kolpakova’s
sulphide. At the present stage
of her carer a certain scaling
down of effects in her pure
Vaganova training (she is the
last pupil of that great teacher
still performing) suits the
Boumonville style, while in
every other respect Kolpakova's
art seems richer and more
expressive. There is a fullness
of tone— both emotional and
physical — and a generosity of
impulse to this sylphide which
tells us that her obsession for
James has nothing spectral

drama, ihe ^

character, is tnou^hlfJ- , ;

UV t few telling gestures sh»« «

uAllf?ed urging :

to indulge in a villas® /' r .f “X ■

find Berthe warning
about ber weak neart rev«u .
Albrecht indecisive as m-hun
ing horns sound zoo he ":£t <c .
he cannot stay in tin. ■'“ h t
his peasant disguise: icll tna.
HtiarioD cannot
at first to break into Ajbrejnjs
cottage until the memory of h--» .
love for Giselle drives nim on
It is the accumulated m-ss
such detail, contained with. a
tbe broad Phrase of the action
and all part of the fabric of the
production's style-atmosphere,
which makes this so superior .t
presentation.

The darkly haunted second
act filled with the shimmer ana
power of the Kirov will banc.,
is a marvel, and a notable con-
tribution to tbe potency of tin*
staging comes from the Kirov
orchestra (amplified though it
is) under Yevgeny Kolobov, who
conducts Adam as he conducts
Chaikovsky, with a loving com-
prehension of the score s
capabilirv to inspire 'he drams.

Giselle was Olga Likhovsfcaya.
well mannered, sensitive, ana
at her best in the mnd-scerfc
to which she brought a desolarff
pathos. Her dancing had a fin®
stretch to it. but lacked tMt
luminosity of feeling which
earlier Kirov Giselles have,
shown. Her .Albrecht. Yevgeny
Neff, was a decent figure, but
something too discreet for a
romantic hero. I ‘

A Giselle for the future must
certainly be the Kirov’s latest,
and still secret, hope, Altinai
Assilmuratova- Twenty yemS
old, outstandingly bcautifujj
Assilmuratova was seen in -a
single Swan Lake in Paris, and
also in a divertissement solo,'
her appearance arousing ex-
treme interest.

Even as a corps de ballet
sylpbide her beauty-ravishing*
line, long limbs, an oval fac-1
with huge dark eyes, sublime
placing of head and neck— as
well as the mysterious inner, '•
grace of her dancing was dear.;

Illinois Jacquet/The Canteen

. Kevin Henriques

Tenor - saxophonist Illinois
Jacquet. a not unfamiliar visitor
to London, has a happy, reliable
knack of picking compatible
accompanists who share his own
sunny, broad-based extrovert
new of jazz. The three
musicians with him for his en-
gagement at The Canteen, in
London, 1VC2 (until June 19),
are all felidtious choices who
would be hard to improve on,~
headed as they are by the
genial, slyly-smiling veteran
bassist Slam Stewart.

Though he tends to overdo
his renowned speciality of
simultaneous humming and
bowing in unison which reaches
a truly high point every night
in an extended feature, “Play
Fiddle Play." Stewart's all-
round command of the bass is
one of the quartet's biggest
strengths.

No less pivotal is the widely-
experienced drummer, George
“Dude" Brown from Washing-
ton, relatively unknown here
but who has played with such

sax virtuosi as Gene Ammons
and Sonny Stitt. Brown's time-
keeping. is an object-lesson, his
work on skins and cymbals
forceful where needed but
never obtrusive.

Pianist Richard Wyands, who
completes the rhythm section,
is likewise much experienced.
He is an eclectic player whose
solo version on Saturday of
“Laura,” taken faster than
usual, was a tenderly shaped'
piece of craftsmanship.

Jacquet himself, on Saturday
wearing a distinctive pink
jacket, again reveals himself as
a warm, heavily blues-rooted
tenorist especially in medium
tempo selections such as
“Robbins’ Nest” and “What am
I Here For?" The excursions on
faster themes, eg, “Jumpin’ at
the Woodside” and “Flying
Home,” . are controlled and
exciting and he never resorts to
the crowd-pleasing, freaky high
notes with which he made his
name when with the Lionel
Hampton band and later with'
Jazz, at the Philharmonic. -

Coffee Concert/Wigmore Hall

Dominic Gill

After the success . of . their
short experimental list . of
Sunday morning “coffee con-
certs” last summer, the
Wigraore Hall has this year
launched a full-scale series of
12 recitals on Sunday mornings
between June and September.
Audiences appear to agree that
late Sunday morning, after a
walk in the park, is a fine time
to relax for an hour and listen
to live chamber music; and that
£2, with a cup of coffee (or
glass of sdaerry) included, is an
exceptionally reasonable price
to pay. for 1 the privilege.

The first .recital of the new
summer season, given yesterday
by the GabrieH Quartet with
the American clarinettist
Richard Stoitzman, played to a
packed house. Some tickets for
the rest of the series are still
available: but hurry— even for
recitals as far ahead as
September. They are selling fast.

The climax of the Gabrieli's

THEATRES

MBWVe.AIMand. S 836 M7B. Credit

ELIZABETH 1 QUINN CHILDREN OF A
LESSER COD. ______

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ILPWTCH. » »,ii!

For a short -wspn. ALAN -j?-* ...
Best Acaor af ^r^GOOO-

£ 5 .

- up. Mi iwg B j CC 536 1 Gfp
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“JV* 3 7! £3 EvCS 8 pm. TODAY Mat

ROAD tjv Helen® Hand- OVER 200
PERFORMANCES.

£BMI“ ne "

,PpLW_VICTORJA

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OF MUSIC- london's greatest value
GoArf seats from £'.30 JJJt JNilJBW a
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5TORIA RESTAURANT THEATOt,

cWriiw * D Ss n ^ w « ‘ i 5 n *

OFFICE 01 -437 656516. OPENS JUNE
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Followed bv dancinp- ilO. Ei=-M- EJ.|-
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ROYAL SHAKESPEARE COMPANY

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£p* PtW fSSbS. Nwt PCTl A DOLL'S
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01-638 8891. Reservations; 01-6"
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Quartet evcla Filth Contort. Allegri
twee Ofwrti*. Beethewei string Qaar;
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7 15 pm. New Irish Chamber OrdiMtra.
Nlctolas Kraewer conoustor. Jo;;
V Conor Piano.. Herdai Sy ranheny N o 4*
Frauersvmehonfe. Ja ho Flow: fliw

Concerto No 5 ■"_£p,3 i S, “SUSS
i in E flat. TPmor 7.00 »m. ““5*
lour Gthd Rom Japan. Some seats
mil avaiUblo,

BLOOMSBURY THEATRE (formerly Ccjjlf-

alate). Gordon jl WL1. Box Office 387
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(Students) £2501.

CAMBRIDGE. CC 01-836 1488180861

7040. SUSANNAH YORK. TOM BELL.
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CHICHESTER FESTIVAL THEATRE. 0243
781312. Season loonsored bv Martini

J. Rossi Lid. ON THE ROCKS Ton t 7.30.

COLISEUM. 856 3161. CC 240 5258.
H«ll“ cC 930 0731- Unt.1 Jgiv 3-
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sin Jet Ansofiki fr'SSMSS

Iy^ h h ony®' IIM RU^J ,ln N^kr^ ,a ^S
dance at every pert.

COMEDY THEATRE. S 930 ZS7S. CtedK
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Thor* 3. Sat 5.15.. .Price S2-5D-E7JD
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DONMAR WAREHOUSE. 41 Earllun SI -
5 CC 01-836 10711379 6569. Bkfl. DOVT
open tar AUNT MARY by Pirn Gems-
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DUCHESS. S CC 01-836 8243. Mondav-
Thufidav at 8-0. Frwav 6 Saturday
6.0. 8.30 VICTORIA WOOD and THE
GREAT SOPRENDO In FUNNY TURNS.

programme, which was intro-:
duced by an aAmiabl-e perform-
ance of Dvorak's F major;
" American " quartet op. 96. was
a fine account with Richard:
Stoltzman of Mozart’s clarinet'
quintet. The mood of the
playing matched the air of the
summer morning: very warm.;
but not oppressive, slightly
dreamy, with the hint (quicklv
vanishing) of a distant storrri.
.The smoothness, of Stoltzmarro
tone and phrasing was a speciajf
delight: a clear, radiasf

sonority without a trace VJf
nasal whine, full of glinti^;
lights and subtle colours — i'i±
pianissimo gently insinuating. Ifc
fortissimo round and luminous.
There w as no sharp edge oh
faltering in the ensemble either.’
but a quiet and thoughtful 1
energy: the delicate contrapuntal
threads of the minuet and it*
pair of trios were beautifullv-
aovetailed; there was a sprin**-
to_ttie step of the finale, but*
carefree, without urgency.

Allan Dull. GrtMUD uln Box

6061. CrMttwe hoMS«X 930 0731.

0'HJted'" bv
Of OfflM! 579

GLOBE. S CC 437 1592. Mon-Fn 7.50. 1

Wed mil 3-0. Sits 5.0 A 8.0. GERALD
HARPER. VIRGINIA McKENNA. JAMES

GROUT. JOHN BARRON. LUCY [

FLEMING In A PERSONAL AFFAIR. .
E»ei at 7 pm. Credit card Hotline 930 I
0731.

NATIONAL THEATRE. 5. 928 2252.

OLIVIER i open sta-aci Thm Frl 7.15 (lo*

QUIXOTE bv Cervantes

■THE ORE5TE1A — Iasi peris June 23 &

24>

LYTTELTON larsictiilulti SHIN Ton't
Z.iS- Tow .3.00 A 7 45 THE SECOND
MRS TANOUERAY bv Arthur W. Pinero.

GREENWICH. 5 CC Q1.BSB 7755. E'

IT.

7 .45 (June 21 7.01. Mats Sat a.5.
From^urw 1- Coward's DESIGN FOR

HAYMARKET THEATRE ROYAL 930 i
9832. Ev<K 7.30. Mats Wad 2.30. Sat i
4.0 . PENELOPE KEITH. MICHAEL I
DENISON. JOHN TURNER In CAPTAIN I
BRASSBOUND'S CONVERSION bv [
Bernard Shaw. Olr bv Frank Hauser.
Previews tonight S tomorrow. Opens
Thwadav at 7.00. Running In raoertoir. I
v> U, A Coat of VarnUti & Hobson's |
Choice.

COTTESLOE Hmiil •auditorium — kxw

price :rts» Ipn'l 7 amor 7.30 THE
PRINCE OF HOM BURG bv Hrlnrleh von
Kie »t (SUMMER Last oerfs Thun. Pn.
Sat Wen Jure «7. 18. TS.i
EWtllfit cheap seals day gf pert all

3 theatres. Also s’anebv d5 mint before

start. Ca- park. Restaurant 928 2033.
Cred-: zaref htni R2B wrt Air

Cred'! rortf bfcgs g2s 59SS.
conditioning.

NT also at HER MAJESTY'S.

950 (

HAYMARKET THEATRE ROYAL.

9832. June 24- July 7. PETER BARK-
WORTH In A COAT OF VARNISH. A ,
new play by Ronald Mlller.'-

OPEN AIR REGENT'S PARK. S 486 2431

Insane credit ard boo* nos 930 0731.
S*te O'Mara and Christopher Neeme in
THE TAMING OF THE SHREW. Eves
7.45. Mats Wed. Thur & sat 2.30.

HAT MARKET THEATRE ROYAL. 330
9832. July 8-Julv 21 . PENELOPE KEITH (
In HOBSON'S CHOICE, a comedy bv

PALACE. CC 01-437, 6834. CC Mollln-
_«327__Ani.-*w Lloyd- WebOer i SONG

Harold Brig house. Directed by Ronad
Eyre.

*- NP DANCE. Starrln -1 Marti Webb A
Warn- Sleep _ Limited

HER MAJESTY'S. 930 6606-7. Group

safes 379 6051 E»es 7.50. Alr-eondi-
thMHng. Sat mat .3 0. FRANK FINLAY t
In AMADEUS bv PETER SHAFFER.
Directed bv PETER HALL- Credit card
Hotlines 930 0751 or 950 4025-6 1

wavne Sleep Limited season now
extended to Scot. 2S. iSB^TMon-Frl
8. pm. Mats Wad 3. Sat 5.45 8.3C

•'mm "t J m 14- tvw 8.0. Frl a. Sat
5 * 8.30,. some good seat* still

6061 ° l " m3It P er *»- ©ouo sales 379

KING5 HEAD. 226 1916. Dnr 7. Show B.

MARRY ME A LITTLE son OS bv
Stephen Sondheim.

LONDON PALLADIUM-

MICHAEL CRA'

01-437 7373.

WFORD and Uie entire

cisf or BARNUM CURRENTLY ON
BOX OFFICE

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OPEN NOW. For. •JJ.JHriK.monci • -’ ,OIT >

* N 1 X TH cATRE iCharlna Cross Roatii

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RE-OPS N ING UN JUNE 28 throne h IQ
Feb 5 or next year Evenings 7.30. Mats

Wed & Sab 2-45. Barnum Hottmej
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T S^ T 5h6? naft ?|r-^- - Bw 1

Crus; ram

LYRIC

CON

PBR6NCE. A new Pier bv Rebut Davjd
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Wed 3-0.

p K“0'SLY. Air.-emd. 437 4506 CC
trtF" B Grou ? 5 alPS 01-036 3964
Mnn-Frl 7.50. .Mat W« 3.0. Sat 5.30
novAt 5, awinte.

wii'v A fe,-5J?.^- KE:1PEA " E COMPANY in
bita iKr ; npw rnmodv EDUCATING
RITA. R5C alia at AidvrychiBarolcaa.

'■Efr 2,jf2.3 Q o!- 7 ^

4 30 * 8.15- HAVLer MILLS.

Stanford ’wHsbo.
tvniC^ffnjbSG: Eves a pm Sheila Glsb

P Ume.w52SU^- ,{e *JC?I bKiN Antfruw

umSiWCDStr s f VITA. Dh bv Hal

Siit^N S'®v bj.*- Thin feconaimr

BS?'6i 5S jR.'S H?tn r J D «9'

_ZflbliOur akg%, Telcteu Q1-2QO 020Q,

■wnbuivueiftiB i

7-30. Frl ft SK « 5fsS E I“a3o"G2£S
MIC Bat Ofl^e Q1-379 0061.

gkANorffcB w Su5i^ |; TS j u fi!IS

^W?.iss H af\e‘Si o !5**

ecsian to "iwnbSV b? u'Ef cl *V.S2

ROYAL COURT S.CC 750.1745. Evas
8.0. Sat fna' 4.0, Mon Evas & Sat
Mat all seats £2. NOT QUITE JERU-
SALEM by Paul Kember.

Srnion Callow In BUILDING THE PARTY
bv Clive Mnrlson Rehearsed Reading Sub
13 June 7.30 P*n.

5

ROYAL COURT THEATRE UPSTAIRS.
750 2554. Ol FOR ENGLAND bv Trevor
Grirntbs. From Tamor TJO. All seats
£ 2 .

SADLER'5 WILLS TNEATWE EC' - CC 278
H91G ns line*). Grp sales 379 6061.
24 hr instantly confirmed re*. 200 DTP"
AUSTRALIAN DANCE THEATRE.
... the nen mood of the exhilarating
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3rd Dance Subscription, now ooen. The
b-.st dance senes ever. Ring 01-278 08SS

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IT'^o^-ich^ frayfts "new

aaia auM -

ST. GEORGE'S _ SHAKESPEAREAN TH.
*01-607 1128. Pcrts 7.30 nm- TWELFTH
NIGHT In rcpwlofre. June 5, 4. 5. 11 *■
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ST. MARTIN'S. CC 836 1443. Evj B.

Tucs Mat 2.48. Saturday* 5 A 8

Agatlu Christies.

World's longest- ever njn^ -*0th Vilr -
Fuiiy a'r-com. ttoned theatre.

For reserviJtofli or on » . — -j-t— -

Greatest Niabt Out .f rom 8 am-. 5_b«arf

1,1 ooiL Dinner, 3 bands.

FINAL WEEK.

VAUDEVILLE. CC 01-836 9988. E«. 8.

JACKSON 243 AGATHA “cHRISTIe"
CAROSON THE TABLE. Fully air
conditlgncd tbeatra.

VICTORIA PALACE. CC01-B34 1317-8.

eoei ^ 8 OENnH waterman antton

rm"5'

Pa« Directed bv Peter Wopd. Previews
Ek illy 9- OPENS JUIF 20, at 7 JO
sS" ntonttv »' 7 JO Pm- Mat Wg * S»*
3.00 pm- Credit card H ogling 330 0731.

VICTORIA PALACt CC 01-BS4 1S17j«.

01-828 47S5-6. Evfls 7«3Q. Mate Wed
A Sat at 2.3L. Limited numlwr of jmed
scats avail iMs wwb FLIZABctm

Bffi!

JSBffli JiakBBr'BigMP'i:

srt jq~

M04-FN. 7J»._'Sat..A3» ^

ZSt ZM.'hearfUKhn^r

piav. Most •: id julv 51. •

F.T. CROSSWORD
PUZZLE No. 4,891

ACROSS

1 Part of Yorkshire terrier (S)

5 Flower sheath from track in
the south-east (6)

10 Regretting having put mat
outside at home (5)

11 Assign a characteristic quality
(9)

12 Wherefrom one may view
one’s neighbours could be in-
dicative in child’s dog

13 Address the Spanish in Rus-
sian workers' guild (5)

14 One who eats away and so on
with her (fi)

15 Utter rapidly “Dance can-
celled" (4,3)

IS Hake ready to secure and
crumple (5. 21

20 Illegal broadcaster ’ from a
Corsair? (6)

22 Article removed from earth-
nut leaves one (5)

24 Cutting ditch by worker (9) '

25 Use a tool (9)

26 I'd sit awkwardly for . inter-
national linguist (5).

27 Join op in French border (6)

28 Ray in a headline? (8)

'‘-as,-:

>'V

gn».3St$E§r l s-

TOr- -a>> 7-

DOWN •

1 Foreign weight or a bar con-
verted (6)

2 Gunners in tears? It's a

natural downfall! (4-5). ' ■

5 It would be unusual If X
Across was as happy as this
(3, 4.3.5)

4 Channel swimmer — from Eng-
lish dub (7)

6- Confidential custom in which

. many doctors are involved (7,

f Audibly bound -to believe (5)

8 Order to soldiers' observers
• abandoned (4, 4) . ‘ •

9 Stevedore and '.Pole . on tug
(6) .

IS East German, theory of super-
. lordly could mean banish,
meat (9) . .

17 Get away without, notice in a
frolic (.8)

,19 Plate ph top of table-^-thafs
' obvious, (p).

20 Excuse In front of book (7) -

21 Country right to provide' old
Greek-cota .. : (fi)

23 .\1~ot "couhtitylrifiel refotmed

(5)

Solution lo Puzz],

* iX °. 4,890

ffl-

j

• .'v

I

20

Financial Times Tuesday June. 8. J982-

FINANOALTIMES

BRACKEN HOUSE,: CANNON STREET, LONDON ^C4P48Y
• : B^ramsrFirtant'mo,Lonck)n PS4^Tetex; 8954871 ■
Telephone: 01-2488000 - ■ •

" Tuesday June 8 1982'

The banking
free-for-all

THE INVASION OF LEBANON

By Roger Matthews, Middle East Editor

Ns

, THERE ARE now fairly dear
; indications that the bank lend-
ing figures for May — the clear-
ing bank figures will be
, announced today — will show
seme slackening in the recent
breakneck pace of expansion, if
ohly because the public sector
fchs returned to financial deficit

■ The authorities, who have at

■ last been beginning to show
: some signs of worry about end-

• l?ss credit growth, may well
feel tempted to heave a sigh of

[ relief, and shelve the issue.

' This would be a bad mistake.
It would simply confirm the
belief of the growing army of
; sceptics in the financial mar-
kets that the authorities control
the banking system only in the
, Latin- sense in which the
weather . forecasters “control”
the weather — that is, they keep
i a helpless eye on it This feel-
ing undermines confidence and
. holds up interest rates.

: Expansion

; -The basic facts are clear
; enough. Under the English
, (though not Scottish) system,
in which current account
holders are rewarded with free
! banking services rather than
- interest payments, bank profits
‘ expand disproportionately when
•’ a monetary squeeze leads to un-
•; tfsuatiy high interest rates. This
■ accelerates the growth of bank
. capital, and the banks subse-
quently strive to put this capital
' to work. Hence every credit
squeeze tends to be followed by
jf - period of aggressive expan

• sion. Much of this has occurred
itr overseas markets; sterling

; business is now less than a third

• Of the total liabilities and assets
<jf reporting banks. However.

! some of the growth also takes
_' place in domestic lending— the
'.numbers which have recently
caused such worry.

r Ceiling

^.Sincij the reforms of 3971,
tfce Bank of England has

• striven for the most part to rely
entirely on interest rates to

• Control credit growth and
■ monetary expansion, with very
' mixed results. At the best of
. times the medicine is slow-
' -working. At othw- times.
' .politicians' put an effective
; cfeiirng on interest rates, and

ijjtfaer devices are invented to
rotrbl the aggregates without
using rates or unduly squeez-
ing the hanks. The “corset"
^as one such device; when it
was abolished, it proved that it

S ad only concealed a vast
nderiying growth, which
Quickly inflated the money
Supply.

J The present manoeuvre con-
jnsts of overfunding by the
government, matched by Bank
.if England buying of commer-
cial- bills. This does control the
Monetary statistics — lending is
financed by government bonds

rather than bank .deposits. But
as fast as the authorities buy
existing domestic bank assets,
the hanks look fior new ways to
expand. '

This odd form of control— it
looks to the banks more like a
cheap source of funds — does
not impress the markets, which
observe that hank lending is
growing at two or three times
the permitted rate of monetary
expansion. It also raises under-
lying prudential questions. The
banks have sold their promptest
assets— government paper and
first class -bills — in pursuit of
this charade, and substituted
increasingly long-dated and
sometimes increasingly risky
domestic and foreign loans.
This is not what most monetary
authorities would recognise as
discipline.

Furthermore, this expansion
may also he undermining mone-
tary control itself. As the hanks
have invaded new markets,
other intermediaries — the Post
Office Giro, the Trustee banks
and above all the building
societies have responded by
offering increasingly bank-like
services. The growing liquidity
of these deposits, sometimes
nominally of long term, is not
fully reflected in any statistics

Resolute

Ministers have been reluctant
to face these problems for a
host of reasons. It is more com-
fortable to ignore problems
which so far only worry the
more technically-minded. Ques-
tions of prudential supervision
are in any case particularly
difficult to tackle; the Bank of
England is defensive in face of
Its established informal
methods, while in the' case of
some of the non-banks it is not
clear who. is responsible for
what.

It is time to be more resolute.
The Chancellor's wish to tax the
banks effectively is bound to
bring some prudential issues
into the open — and the Bank’s
argument, occasionally voiced
in public, that profits must be
protected for prudential reasons
is patently absurd; excessive
profits may encourage rash
expansion and the consequent
risks do not justify excessive
profits.

The Chancellor should there-
fore persist with his search for
more., effective and . more
equitable ways of taxing the
banks, and insist that any
prudential problems should be
solved through fighter
discipline. We need new rules
to check excessive maturity
transformation, perhaps by
reserve requirements which
will Impel the banks to bid for
genuinely long term money.
Above all the Chancellor should
remember that monetary con-
trol without banking discipline
sooner or later proves a sham.

ONE can claim . that
Israel’s mote into
Lebanon — now rapidly
becoming a full-scale invasion
— was not very clearly signalled
in advance.

The. Israeli build-up -on the
border had been well, charted
and their increasingly strident
accusations of ceasefire viola-
tions well publicised. Israel
claims at least 150 violations
since a ceasefire was nego-
tiated following the outbreak of
cross-border fighting nearly a
year ago?

Israel’s forces were all ready
to roll across the border when
last Thursday night Mr Shlomo
Argov, the ambassador to
London, was brutally cut down
by Arab gunmen whose allegi-
ance has still not been estab-
lished

Israel did not wait for clari-
fication. A two-day softening
up of Palestinian positions
through heavy air attacks and
artillery barrages brought the
predictable response from the
Palestinians and FLO' shells
and rockets began to land in
northern Israel.

But the fact that the Israeli
military machine was in such a
high state of preparedness has
reinforced Arabs in their belief
that Mr Bogan may now be seek-
ing to redraw the map of
Lebanon.

A theme much stressed by
Israeli officials in recent weeks
has been that there is no longer
a sovereign country called
Lebanon. They would like to
help Lebanon regain its sov-
reignty and sign a treaty with
Israel. The sine qua non of this
would be the ejection of the
Palestinian guerrillas, who per-
haps number 20,000 and' the
removal of the 30.000 Syrian
troops who are the sole com-
ponent of the Arab, peacekeep-
ing force which has been in
Lebanon since 1976.

If this is Israel's aim tins
time — and so far there has been
no official statement that it is—
it win not be achieved without
sustained and bloody ' fighting.
The PLO forces have nowhere
to run and, as Mr Yassir Arafat,
Its lender, has stated, will prob-
ably fight to the death.

If the Palestinians are merely
squeezed northward towards
Beirut, tins will exacerbate the
already horrendous problems
around the capital where rival
groups regularly battle for
territory. . It wiH also push the
Palestinians and their allies
doser to the Christian Maronite
forces, to the smith of Beirut
who are backed by Israel.

Even if Israel has now
achieved its main military
objectives the situation in
Lebanon will have worsened.
Mr Moshe Dayan, then Foreijm
Minister, wrote after the 1978
Israeli invasion. ‘'True, great
quantities of terrorist arms were
captured; but it also meant
destruction in their village bases
and thousands of peaceful
citizens, with whom we. had to.
try and live as good neighbours,
fled in fear of war.”

“The picture of long
Straggling lines of families,
unth their old and young,
leaving their homes and
plodding northwards to find a
place of refuge, scarred our
good name.”

That scene is being repeated
today, although probably on a
much larger sca*le and regard-
less of world-wide appeals for a
ceasefire and withdrawal of
Israeli forces. Mr Begin has.
however, freed his people in
northern Israel from the risk of
any renewal of artillery attacks
across the border and thereby
fulfilled one election pledge
made last year. He will also
hope that the 1.1m Palestinians
living in the West Bank and
Gaza will understand better the

political realities of their
position and drop their vtodent
opposition to occupation.

In any event a second war
has now been added : to the
frightening spread of instability
in the Middle East Israel’s inva-
sion is potentially every bit as
dangerous. as the 20-month old
war betwen Iraq and Iran and
rightly p re-occupied the world's
seven leading industrialised
nations meeting in Versailles on
Sunday.

The immediate danger in
Lebanon is that Syria, which Is
backed by the Soviet Union, will
be drawn into the fighting. This
would have totally unpredict-
able results and certainly raises
the real prospect of a super
power confrontation.

The immediate, declared ahn
of the Israelis is to push the
Palestinian guerrillas 40 kilo-
metres back from the border so
that their guns and rockets can
no longer hit the Galilee region.
But the Arabs suspect there is
rather more to the invasion
than that

Mr Men ahem Begin, Israel's
Prime Minister, has long
declared Ms desire to cut off
“ tiie evil arm ot the Palestine

Liberation Organisation.” Israeli
officials have made do secret of
their desire to drive the armed
Palestinians oat of Lebanon
altogether. Where they go is of
Little concern to the Israelis —
either to Jordan, which Israel
says is almost a Palestinian state
anyway, or to Syria where they
would be better controlled by
the regime.

A decision to attack the PLO
head on is a direct challenge
to the wider Arab world. AH
Arab states recognise it as the
sole legitimate representative
of the Palestinian people. And
tile majority of Palestinians
Living under Israeli occupation
on the West Bank and Gaza are
similarly thought to accept the
PLO.

A just ■ settlement of the
Palestinian issue is central to
the declared policy of most Arab
governments so it is difficult for
those regimes to maintain their
own- credibility if they do not
respond to Israel’s- action.

This is true for Syria and it
is important, if in a rather
different way, for countries such
as Saudi Arabia -ana -Kuwait
And it places .Prerident Hosni
Mubarak of Egypt in an

Brana Radovto

acutely difficult position.

He was seeking to act -as the
bridge between the Arab coun-
tries and Israel in the search
for a comprehensive Middle
East peace. To this end there
were already signs df growing'
contacts between Egypt and the
moderate Arab states. At the
same time, Mr Mubarak was
ready to play a positive role
in support of the U.S. renewed
attempt to negotiate a form of
autonomy, for the Palestinians
on the West Bank end Gaza as
provided . b«v the Gamp . David
agreements. ”

The Israeli invasion would
appear to have pre-empted the
possibility of those talks being
resumed in the near future."

The Egyptian leader thus has
the option of confining bis anger'
at the Israeli invasion to words
of condemnation, or of taking
some form of action which
would immediately run the risk
of being inteipreted by Israel
as an abrogation, of the peace
treaty.

The position for the U.S.- is
even more grim. Its standing
among Arab countries wiildiave
-slumped stHl further. -Few -if-
any Arab leaders will believe
that Washington neither 1 knew

HOW THE REGION LINES UP

■

Dangers of the
steel cartel

ISRAEL:. Fought four- wars
against its Arab neighbours.
Superb military, weH equipped.
Headed by Menahem Begin.
Deeply conscious of Second
World War holocaust, devoted
to retention of West Bank
which Mr Begin calls by
Biblical names of Judea and
Samaria. Unbending hostility to
PLO. Return of Sinai to Egypt
described as final concession in
search of peace. Willing to
take whatever action,
regardless ol world opinion, in
defence of own interpretation
of its security needs.

LEBANON: Small, scenically
beautiful, once the jewel cf the
Middle East Held up as
example of inter communal
harmony, centre of regional
banking. Riven by 1975-76 civil
war between Christian forces
and Moslem leftists backed by
Palestinians. Syria intervened
to save Christians from defeat;
later turned against them. Now
anarchical; president and
government have little
authority. Feuding between
different Arab groups. Country
divided into areas of influence:
Christian, Syrian, FLO, Moslem,
etc.

PLO: Recognised at Arab
summit as sole legitimate
representative of all
Palestinians. Headed by Yassir
Arafat Comprises several
different factions: by far the
largest is Arafat's Fatah.
Engaged during 1970s in
spectacular terrorist and
guerrilla.operalions. Officially,
pledged to destruction of Israel
but would trade recognition for
a state on the occupied West
Bank and Gaza. Has been
winning increased diplomatic
acceptance. Would lose most
independence if thrown out of
Lebanon.

STRIA: Headed by President
Hafez al-Assad since 1970,
patting end to chronic series of
coups. Prides Itself as being
heart of Arab nationalism.
Fought fiercely against Israel
In 1973 war. Opposed Egypt’s
peace overtures to Israel.
Fearsrerents in Lebanon may
spill over. Lost faith m UJS- and
to 1980 signed tieaty with-- ■
Soviet Union. Faces serious
internal challenge from Moslem
frunfcanetathds. Head? hardline .
bloc in Arab league. Supports
Iran in war with Iraq.

JORDAN: Headed by the
greatest survivor in the Arab
world. King Hussein. Wafts
domestic and international
tightrope. Lost West Bank and
Jerusalem in 1967 war: Threw
PLO guerrillas out in 1970 when
they threatened his domestic
controL Traditionally close to
-the U.S. Upset by Camp David
accords. Has since distanced
himself from Washington. May
buy aims from Soviets. Backed
Iraq in Gulf war. At
loggerheads with Syria which
is backing Iran. At least half
population thinks itself
Palestinian. ,

EGYPT: First Ardb country to
make percewrfh IsraeL Biggef*
Arab population, natural
political leader. Sadat expelled
the Soviets in 1972, swung
. toU.S. after 197S“war wftti
Israel. Now in receipt of over
$2hu a year mU-S- military and
’ economic aid. Sadat killed fay
Moslem extremists Rut October;
President Mubarak pledged to :
stick by peace treaty. Regained .
l a s t * s li ce of Sinai from Israel at
end of AprtL 1 Wants" to keep '
peace treaty but also get
justice for Pal estinians* .

LEADERS of the chief
/estem industrial powers have
jjjjst issued at Versailles a state-
ment of their intention to resist
jgrotectionism and other
measures distorting trade. At
their meeting in Luxembourg
t&day, ministers responsible for
industry in the countries of the
; European Community have the
Opportunity to do something
' sfljout it. On their agenda is

■ tjhe prolongation of the system

■ production quotas applied to

- t£e European steel industries.

. « In essence the system has set
r production quotas for the im-
portant bulk products of the
European steel industry. It has
been shored up by a not very
effective network of voluntary
self-restraint agreements with
a!! muriber of overseas suppliers

- ahd by a welcome agreement
ajnong the main producers to
<#ase granting underhand re-
bates.

Estimates

»' The success of these measures
chn be gauged by an increase
off about 25 per cent of steel
.prices in Europe within a year.
Tbs steel industry has been
granted a_ .breathing space
within which to restructure.
Rut. by and large, that is where
C|?e success story ends.

'■ "The original intention was

- that the breathing space should
be used to get rid of excess steel

-.making capacities in Europe.

. Their existence is not in dispute.

- meat between the member
governments of the European
Community steel subsidies are
supposed to run out. If, in 1985,
the .steel industry Is still
burdened with excess capacities
it may be plunged into a crisis
far deeper than that of the early
1980s.

Future

Of course doubts always sur-
round medium term forecasts.
There can be no certainty that
in 1985 the market for European
steel will not be larger than at
present thought But it need
not be a disaster if the Com-
munity were to become more
dependent upon imports than it
would be without the cats. The
future of European industry
should lie with high added value
products, not basic commodity
products such as steel. - .

The Ministers in Luxembourg,
cannot do much to accelerate
that process. But they can avoid
measures calculated needlessly
to stall it The system of pro-
duction quotas should not' be
unduly extended: one year will
do. rather than the 18 months
originally proposed by the Com-
mission. The possible inclusion
of new products should be
examined with the greatest of
scepticism.

Contrary

The EEC’s steel regime illus-
trates the sectoral approach- to

Men & Matters

though one may -argue about*' world trade which is contrary

i. tj&eir extent. Current guesses
sffe in the range of 30m -50m
.- tprmes per annum, compared
\£itii present installed capacity
erf about- 200m tonnes.
m But recent estimates from
the European Commission
suggest that by 1985 capacity in
■ the Co mmun ity may be margin-
’ above 200m tonnes. Severe
cJOts subsequently proposed in
; Belgium' will only slightly cor-

reel that estimate downwards.
. There is nothing to suggest that
cuts of the size deemed neces-
sary are on. the way.

P Thus 1985 may prove a fateful
yjfear for European steel masters.
iLis then that under an agree-

to the spirit and letter of GatL
Its only justification is that it
avoided something worse. — an
outbreak of national protec-
tionism and competitive subsi-
dies within tiie EEC. The
danger is that the regime be-,
comes permanent, that controls
lead to more controls and Jhat
the final result is a cartelisation
of trade in steel which can only
damage the world economy. If
the commitments mfidfijtt Ver-
sailles mean any thing ,
ministers should be
ways of limiting the duration of
the agreement and df ensuring
that the rules on subsidies are
strictly enforced.

A happy mien

Back briefly to those mysterious
moves within the TUC to deter-
mine which General Council
members get a ticket for the
official visit to China later this
year.

Readers will recall that last-
month’s meeting ' decided that
Alan Sapper, general secretary
o f the TV technicians’ union,
ACTT. and current TUC chair-
man, should head the delega-
tion. Many of those voting, how-
ever, believed they were sending
Frank Chappie, genera] secre-
tary of the electricians’ union
and probable TUC chairman
when the trip takes place.

Some anger was expressed
about the confusion and vows
were made to reverse the deci-
sion. :

But a compromise of Confu-
cian delicacy was reached at
yesterday’s meeting of the-
TUCs international committee.
Both Sapper and Chappie will
go — which should enliven things
since they occupy widely separ-
ate positions within the Labour 1
movement

Harmony was not total, I
regret To make room for the
present and future chairman,
Clive Jenkins, ebullient leader
of the white collar union
ASTMS, was elbowed off the
guest list.

He took the treatment philo-
sophically. No, he told my
reporter, he was not dis-
appointed since he bad recently
been to the People’s Republic
on his own account

Six little words

A coy -little announcement yes-
terday confirmed what the
American corporate world .had
been wanting to hear for nearly
two yearst.Bill Agee, the dash-
ing young chairman of Bendix;
-had finally - married- .Mary
Cunningham, his former, vice-

president of strategic planning.
The two apparently lied the
knot at a quiet ceremony in San
Francisco at the weekend.

Only three months ago, Agee
got the New York Times to pub-
liesh an apology for an article
suggesting that Cunningham’s
rapid rise at Bendix owed more
to his favours than ber business
abilities. Cunningham quit
Bendix 18 months ago because
of the furore over her promo-
tion, and she later got a job at
Seagram, the Canadian drinks
company whose corporate head-
quarters are in New York.

Agee's statement said in part:
“ There was no romantic in-
volvement between Ms Cun-
ningham and myself while she
was employed at Bendix.” The
last ‘ six words were the
operative part of the statement
because as soon as she left
Bendix, the two were fre-
quently seen together at social
functions and allowed them-
selves to be photographed hold-
ing bands. The first hint of

marriage came in April.

The new Mr and Mrs Agee
(it is the second marriage for
both of them! will clearly
belong, to the mobile gener-
ation. With Mary in New York
and Bill running Bendix out in
Detroit, week-end commuting
will certainly give their love
wings.

Sweet talking

Now we know what sweetened
relations between Margaret
Thatcher mid Ronald Reagan
after their tiff over the Faik-
lands resolution at the UN. It
was jelly beans.

The U.S. President offered the
Prime Minister a few from his
daily bag during the Summit
conference — and she liked them.

To ensure that relations
between the two do not become
soured again, an American
radio station is sending Mrs
Thatcher five pounds of the
sweets. Downing Street has
specified the Prime Minister’s
favourite flavours and is said to
be “real excited” about the
idea.

Lucky number?

Echoing what seems to be the
mood of our times, the hells of
the City’s Royal Exchange will
ring out again today with a
rendering of “ Rule Britannia.”

Lord Mayor Sir Christopher
. Leaver this morning restarts the
carillon— last heard briefly on
the Roshal Wedding Day — in-
regular use. It has been reno-
vated by GiUett and Johnston
for Guardian Royal ’ Exchange
Assurance as a contribution to
City life.'

For 300 years, at least, the
bells of the Royal Exchange
have been playing tunes like the
Bluebells of Scotland' and the
Londonderry Air for Londoners
who, it is claimed, appreciated

them rather more than the
sound of Bow Bells or those of
St Paul’s.

The present carillon, which
will be heard three times a day,
has 13 bells and can play 16
tunes, including “There's nae
luck aboot the boose.”

Royal Exchange inhabitants
and prospective residents like
mmebers of Liffe, the financial
futures exchange,- would be
advised to look around them
when they hear that tune. It
was the last one played before
the previous Royal Exchange
burned down in 1838.

Double florin

The new £0 pence, coin that
comes into circulation to-
morrow should be a help to
youngsters with their geometry
homework being, so I am told,
an “ equilateral curve hepta-
gon "in shape.

But it is to be hoped it proves
to be of more general value
than its predecessor of that
denomination, the double florin
or four sinHing piece introduced
in 1887.

It was intended to serve as
the equivalent to a dollar. But
it was so near in size to the
crown or five shutting piece that
it completely confused the
public. The coin came to be
known as the “Barmaid’s Rain”
from the number of kkfies of
that calling who were dismissed
for mess carelessness In dis-
pensing too much change wWh
tiie drink.

Whether fqf the protection of
barmaids’ or not, the coin was
discontinued in 1890 — though

some of the' 1888 aad 1889
issues in which the second ."T*
of tiie Qheen’s name appeared
as an inverted "1” ore still
sought by co&eotens.

Observer t

Some of the worst
wounds,

are the ones
that don’t show

there are limitations to the human mind. .

Sokaeis.S^oraand AfaTnen^ri^Tnen^feterfietowniofli

to death and violence whilst Iri the service of our
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we help them at home and Ip hospital.' We-run our own -

look'3lS C themS{Ilf ? nd : for t* 10 * 3 wh <> are homeless and cannot
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about th^-.inyasidn plan nor
could not Save ^stopped the miM-
action Srad-.it so ^rishedf • -

- It' is particularly jromc that
only tost week Mr Alexander
Haig, the Secret ar y - of - Btate,
should have speHed cut Ameri-.
can Middle East policy with .
special- emphasis -on a sotation
for Lebanon- and the occupied'
rerritariea. He- tlid so shortly
after Mr Ariel Sharon, the hard-
line Israeli Defence Mini ster,
visited . : Washington and' the
Pentagon revealed: it bad agreed
to provide Israel with another
75 F-16 aircraft waartit $2L5bo. . .

No less a mockery has been,
made of the .rote -idayed by tfee
United Nations troops in
southern Lebanon. Ttoey took
tip position •after the. Mat
Israeli invasion, tin March .1978
with the^dedared aim of creat-
ing a buffer zone along tire
border- lbs inatM .6,909- men
were denied taking positrons
right - -on the border by the
Israefi. creation of a 'afitoodle
wido swathe of territory - con-
trolled by Major Daad Haddad,
a • renegade' ' officer from toe
Lebanese Ariny. .. '

The. UN troops had som e suc-
cess in turning bade attempts
at tiiiffitration. by the PLO and
their aefiast allies tat were
swept aside on Sunday by- the
Israeli armoured ookioms wblch
cut straigto/tferwiigh their posi-
tions. T3re UN Jorces.
themselves absurdly, behind
Israeli Lines. ... • -V

The cost- of . .theses putative
Israeli successes mayl . only
slowly emerge but nowhere will '
they be more gleefully seized'^
upon than in Iran. Ayatollah
Khomeini’s victories in the w^r
with Iraq have been presented
as -the first steps on the ioad to
the 'liberation df Jerusalem. .

At a time of widespread Arab"
humiliation and 2 ZHranting- ; di%'
satisfaction . with : existing,
regimes, the driving force tof
the Iranian revolu tion— Islamic '
fun dame nfatism and fierceanfi-
Americanistn — is likefy- 1 to
appear all tiie more attractive.

It also, of course, provides
fresh opportunities, for the
Soviet Union which 'po longer
needs to search for Middle East
clients. Amid the wreckage of
Arab unity the balance of in-
fluence is swinging to the hand- '
line bloc which has .the closest
relations -with Moscow; • ;•

Mi Haig may weR have cause
to recall^ his . words in Chicago
last' week on the Middle East.
“No region is less fotgiring of
pohticalijassivtty.’’ ; ItSs exactly

will -stand accuse d in-many Arab
countries- todd& ^ j

I

Financia l .Times Tuesday June 8 1982 -

FINANCIAL TIMES SURVEY

Tuesday, June 8, 1982

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IBM leads the world In smdll business systems, but it faces a major challenge
in maintaining leadership in a market increasingly dominated
r by smaller, cheaper madtines.

Battleground of the
computer sector

BY ALAN CANE

THE SMALL business systems sector has become the
.natural battleground for the computer wars of the
early lS80s. . : ■

■ There is already . a plethora of manufacturers,
machines and distributors in the lists and more are
joining up weekly. Everybody is agreed that the nest
few years will see a severe bout of rationalisation with
the weakest going to the.walL

Over-trading and cash flow-difficulties are expected
to take their toll-— in some cases, major small, systems
distributors and systems houses have vanished virtually,
overnight as credit lines tightened.

Battle is being joined on a power of a small mainframe.

number

different ' treats. For the customer, the battle

sinmltaneously. In Ihe com-' Js seen in less esoteric terms.
puter business the traditional He or she wants a reliable sys-
sman systems suppliers ‘are tern that can be upgraded to a
caught in a pincer movement more powerful specification if
between, the matnfitinm» com- ^h e business expands or hie
pater manufacturers scu rrying technology changes:

market

maintain He wants to be confident his

revenues, and the eager, aggros- supplier will not melt away,

■ ’ ■ ■» nnil bn nnnfff Imran 1 tbot U

rive microcomputer makers
anxious to «*gfa»hTicfi a beach-
head on minicomputer territory.

At the technology level, the
state of the art is 15-bit

and he wants. to know that if
the system suffers faults, they
will be .put right quickly and
at a reasonable price. He won-
ders whether it would not be
simply cheaper and less harrow-

machines. computers - which

JZTZSZ vEZT mg to go to a computer bureau.

deal with binary digits Chits)
16 at a , time. There is plenty
of life left in the eight-bit mar-
ket, however- These machines

: What is a , small business
system? It is a fair question,
as definitions have become

in . reccnt * 5 ?

equivalents and less powerful, ' w"

Vfrff cnnrtiol Knmruin* lUJiflrnnil COSl OT CWDJHWST uSIuWflT?.

One definition is based on
(corapnter instructions) written .cggt. A smaU business system

to the- 8-bit format are avail-
able in plenty.

will cost at least £1,600; all that
sum would buy .today la .an

. On the horizon already are- Osborne 1 computer with some
32-bit . . microcomputers, rudimentary software. That
machines based on a single dli- machine is made to a very corn-
con chip or a set of riticou chips petitxve. price, but to be reaUs-
which could rival the speed and lie. customers should be thhdc-

iug of- spending between.' £5,000
and £60,000 to have a sensible
system. (I- have beard tales of
perfectly sotmd senior execu-
tives in major businesses who
thought .they would be able to
buy a system for. say, order
processing for £500!)

-It is Jess easy to make a. dis-
tinction on hardware grounds.
In earlier days there - were
mainframe computers whose,
power and size put them far
out of the reach of the small
business. - .

What these organisations
could afford was a visible record
computer (VRC), a simple com-
puter which could carry out a
restricted number of account-
ing and other functions. Philips
is an example of a company
which successfully -installed
thousands of VRCs.

The development of the mini'
computer.. smaller, cheaper but
with a substantial proportion of
the power of a mainframe put
true computer power within the
reaCh of most organisations.
Companies like DEC,- Data
General and Wang dominated
this phase of small business
system development

What changed Ihe market
irrevocably was the develop-
ment of the business microcom-
puter (“desk top computer"),
a machine which, could be paid
for out of the petty- cash and
which offered individual execu-
tives personal computer power.

It also brought the threat of
data processing anarchy in many
organisations as guidelines laid
down bv the data processing
department were thrown aside
by executives anxious to come
to grips with their own. com-
puting.

Entrepreneurial, engineering-
based companies such as Apple,
Commodore and Tandy led this
market sector. Now all the
majors have their own "personal
computer” offering.

IBM showed the way to 16-bit
computing with its personal
computer, launched last year.

Now Digital Equipment, the
largest manufacturer of mini-
computers In Ihe world, has
followed suit and only last
month Wang, the word proces-
sing giant, weighed in with its
16-bit offering.

According to the consultancy
IOC Europa, the small business
systems (sbs) market in Wes-
tern Europe is growing at about
20 per cent a year. But tradi-
tional suppliers (minicomputer
manufacturers) are taking a
dirruinshing . proportion of the
revenue.

Suppliers

• The list of companies supply-
ing traditional sbs models
includes the mainframe rs like
IBM, Burroughs, NCR, Sperry
Univac, and ICL. It includes
mdnimanufacturexs such as
DEC, Data General, Philips,
Kienzfe, .* NSxdorf, Olivetti,
Systrme, 1 TriumphrAdler and
Wang.

In 1981, according to IDC,
some 46,472 units were shipped
to a value of US?1.75bn.

In 1987. it predicts Ihat
122,977 units wffil be shipped
to a value o£ US? 5.23bn.

The HE market is expected
to grow at the fastest rate of the
four major Western European
countries, according to IDC,
despite the most competitive
commercial sector. It says that
sbs suppliers have been moving
upmarket to avoid competition
from the strong desktop vendors
and low-end minicomputers sold,
through third parties.

It has meant changes in busi-
ness strategy for the larger
manufacturers. Sales techniques
involvmg large numbers of .
highly trained salesmen and
substantial support and mainte-
nance operations are fine far
systems worth US$lm or more.
Selling himdreds of systems a
month worth only US$10,000
or so ds a different matter.

Minicomputer companies have

I SuritMriand/ :

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traditionally done most of their
business through OEMs
(original equipment manufac-
turers) or systems houses,' com-
panies which may incorporate
only the guts of the minicom-
puter in a system of their own
design and carrying their label
on the front panel

In Britain, Systime is the
leading example of a DEC OEM,
incorporating the processor
boards and operating systems
used In DEC's POP ranges in its
own computers.

Minicomputer makers use
business systems houses to dis-
tribute their products, software
and systems specialist' which
build complete applications on
to standard hardware.

Mr Simon Pearce of IDC
points out: "Due to the high
level of competition in the stan-
dard product area, a number of
such business systems bouses
found it necessary to become
more specialised in order to
achieve sufficient growth.**

"It is the specialised business
systems houses who seem to be
achieving the highest growth."

This bears out an old prin-
ciple of success in data proces-
sing; the best systems are
designed and written by people
with an intimate knowledge of
the task they are supposed to
fulfil. Business houses which
specialise in specific areas
enhance their own reputation
for competence and improve
their competitiveness.

Manufacturers - gained the
advantage of. - selling into
specialised application areas—;
&ain sales or farm feed control,
for example, that would be
difficult to penetrate by direct
sales methods.

Estimates are that the pro-
portion of total minicomputer
revenues raised in Western
Europe through business
systems houses activities will
increase from 13 per cent
(US$ 277m) in 1981 to 19 per
cent (US$ 976m) in 1986.

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Minicomputers versu s mkarocempaters
Bureaux: big changes are under way
Key questions on software options .
Growing range of software packages
How to choose the right computer
The race among the manufacturers

Case studies in systems* applications
Major suppliers: amts installed
Market for data-exehange devices

Leading SBS models

Memory: rapid changes in technology
Profile: Allied Business Systems

Mainframe manufacturers
have special problems in the
sbs market

IBM leads the world in sbs as
it does in mainframes. At the
end <>£ 1981, its installed base
in Western Europe was worth
US$ 1,634m representing a quar-
ter of the total. Olivetti was
second with US$ 792m, and Nix-
dorf third with US? 715m. But
the average' value of an IBM
installation was US? 72.3 com-
pared with US? 16.0 far Olivetti
and US? 54.8 for Nixdorf.

Problem

This illustrates graphically
IBM's problems in maintaining
market leadership in a market
increasingly dominated by the
smaller, cheaper machines.

It has introduced its desk top
computer — which seems to be
attracting good notices — * and
it has announced a new snail
computer, the System 23 Data-

master which combines word
processing with data process-
ing. •

It has also embarked on a
series of marketing gambits
that are quite foreign to its
customary conservative nature.

It will sell its personal com-
puter through dealership and
its own High Street stores, it
has taken space to display and
sell its wares in banks and it
will agree to complementary
bidding for orders with busi-
ness systems houses. It pro-
duces a catalogue of non-IBM
sbs software and a catalogue of
office products which can be
ordered by telephone. In the
UB. it has “remarketing" agree-
ments ' with business software
houses for the System 23 Date-
master.

Mainframe manufacturers are
also finding it more sensible to
licence sbs technology from a
bright new company than to

develop their own.

Convergent Technology Is
one such company. Based in.
Silicon Valley in California, it
makes a highly innovative and
powerful sbs. Ihe industrial
design work was carried out by
the UK-based Bill Moggeridge
Associates.

It is available in Britain from
Computer Technology, the ex-
clusive distributor. It is also
available from Burroughs as
the Burroughs B20 sbs and
from NCR in the U.S. as the
NCR WorkSaver.

Third party sales arrange-
ments, new distributorships,
badge labelling and a spectrum
of marketing techniques new to
the computer industry are
becoming common' in the sbs
marketplace.

Sbs computers may lack; the
excitement of the big main’
frames — but how they are
being sold has become a fascin-
ating story.

OFF

— — - T ~

Trying to co-ordinate Wm

yourworkf lowcanbe a real pain /
but we’ve found a painkiller J
that'll give every company boss
instant relief.

The SBQ.DOisa new
multi-work station' 'computer
that employs a unique monitor-
ing system. -

It’s known as the British
Olivetti System Supervisor.

At Olivetti we simply call
it 'Boss’.

it’s an advanced system
that manages all your informa-
tion processing by monitoring
its work. load from several
workstations and allocating
priorities. .

Boss does tfiis’by allow-
ing stations to communicate
between each other via their
VDU’s by simply printing out
messages on their screen-

However it ensures absolute
confidentiality because it only gives indivi-
duals access to information relevant to
their needs.

So the warehouseman knows about
stock control, not about the MD’s private
sales forecasts. .

- ' The S60Q0 is a very advanced
system, but it’s also extremely simple to
operate.

It’s *user fTientpy! so you won t need
an office full of Einsteins to operate it. (Or
a data processing manager to schedule it3

GET ANEW BRAIN.

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But the SBQQQ has a whole variety
of talEnts thatmake it perfectly suited for
small businesses.

If you wish to select customers
according to their size, billings or location,
it’ll do it for you at the press of a button.

Or it can give you an instant
summary of your customers’ accounts by
entering the merest snippet of information
like a telephone number. .

And unlike many systems you don’t
have to wait for it to finish one job before

N asking it to start another.

% " ■ .. . The SB00D can happily

perform several different tasks
simultaneously.

It’ll even look over all its
circuits every morning to check
if there are any potential
problems.

The great advantage
though of the S6000 is that it’s
a modular system, so it can
grow as your business grows.

That means it won’t be
out of date in six months time.

And each time an extra
workstation is installed, the
S6000 won’t lose its speed and
efficiency.

With its off er of fast,
flexible co-ordinated decision-
making the S600D can be a
formidable member of any
company.

In fact, when the S6000
starts working for you, you’ll
wonder how you ever managed before,

j For more in fo r m ation on the SBDQD send this coupon to Valerie Belfeg
i British Olivetti Ltd., Olivetti House, PO Box 83, 86-88 Upper
- Richmond Road, London SW1 5 HUR.

J Name -

(Position ■ — -

Company — ■■ ■

1 Address

.

BUSINESS SYSTEMS

Financial Times Tuesday June 8 1982.

SMALL BUSINESS SYSTEMS

Minicomputers led the small business, systems revolution — now micros seem to be a cost-effective solution, in many cases* But are these tiny machines up to the job?

Elaine Williams examines the options.

Trend, towards microcomputers

MOST PROSPECTIVE users of
smafl business systems hope £o
find equipment which is not
only low cost, but which also
will match their needs exactly
and be very simple to use.
Rarely, if ever, do they find the
perfect machine.

However the range of small
business systems from which a
company can choose is vast — it
indudes the latest personal
microcomputers, which sit com-
fortably on a. desk, to a mini-
computer such as the Burroughs
SOO which occupies a small
room.

The miniaturisation of elec-
tronic circuitry is continuing to
have its effect on the computer
market by providing small but
more powerful systems so that
It is often difficult to decide
when a minicomputer-based
system is superior to the latest
powerful microcomputers.

There are, of course, many
grey areas of application with
the result that it is not an easy
task to decide between, a micro-
computer or a minicomputer.

Consideration must be given
to the extent to which the com-
puter is to be used — whether,
for example, it will be used
only for one application, such
as accounting and stock control;
how much information needs to
be stored; how many people
need access to the system and
whether it needs to be linked to
any other computer system.

The answers to the above

questions are also related to the
size of the small business and
the existing reliance on com-
puting.

Another Important question
which determines which system
to choose is “ fiew much inter-
activity with the computer do
you require? ” because a large
amount of direct computing re-
quires a large amount of storage
space and slows down a micro-
comouters response.

In addition, the number of
terminals which are linked to
the system will determine the
size of the computer to provide
an adequate service.

One P 3 n already see that the
trend Is swinging towards the
microcomputer because of the
rush of new products into the
market IBM committed itself
about a year ago, DEC
announced a flurry of new per-
sonal business computers in
early May while Sony followed
with ils first microcomputer a
few weeks later.

Microcomputers are con-
sidered to be at the same stage
in their development as mini-
computers were in the early
1970s. The microcomputers are
becoming a serious challenge,
to the larger systems but often
lack the software support. How-
ever such a shortcoming is
likely to be remedied before
long.

In fact, efforts to produce
the type of computer programs
for business previously only
available on mini computers

has been stepped up in recent
months and several microcom-
puter manufacturers such as
Tandy, .{dace almost .as much,
emphasis on the software they
offer with their machine as they
do on the attributes of their
hardware.

DEC'S new machine also
comes equipped with, modified
versions of programs which
were originally developed for
larger mainframe systems. To
provide this. DEC signed an
agreement with Applied Data
Research in the UBj This Is
among the largest software
houses which has concentrated
on developing software for IBM
and DEC m ai n f rame computers.

Scaling down the .powerful
business programs such as
financial modelling: run on
large systems so that' it is able
to run on microcomputers also
indicates a possible direction of
the so-called office of the future.
With compatible microcom-
puters and mainframe software
will come an integration, of the
network. A manager will be
able to have powerful micro-
computers on their desks to
provide specialised computing
directly related to his Job,
backed by the more comprehen-
sive and more powerful; main-
frame system when needed.

"When small personal com-
puters came onto the market,

. manufacturers were not quite
sure -where the main market
could be. ft turned out that the

majority of the applications
were in business followed by
a healthy interest from the
educational world.

Even so, the criticism for
those early machines was the
lack of software so that a small
business executive had to spend
a lot of time learning about
computers and programming
before any benefit could be
gained.

In general software pro-
grammes for minicomputer
systems are specially tailored
to the needs of the company —
hence the system is very
expensive. In addition good
back-up from the equipment
supplier is usually needed to
ensure that service is quick
enough to ensure that the sytem
does not fail for long.

Origins

MAJOR VENDORS— RANKING BY COUNTRY

West Germany France
IBM IBM

Vixdorf
fticnxl'iT
IVaag ~
rriumpB

Olivetti

"NOR

UK Italy

IBM Olivetti

Burroughs IBM “
Systime

Benelux Scandinavia Swllz./Aiifit. Spain /Port

Burroughs Olivet
Nixdorf DEC

Ericsson
Wang
Burro ugl

Nixdorf

IBM

OCR

Philips

Nixdorf

Philips

Nixdorf

Source: International Data Corporation.

When looking at the emer-
gence of the personal computer
for the business world it is
possible to trace its origin to
three main sources. Some are
upgrades of personal computers
sold by Apple, Tandy, Commo-
dore and the like. Some are
the creations of a new wave of
entrepreneurs backed by ven-
ture capitalists.

The third and most recent
trend is to condense mini-
computers into personal com-,
puter systems but giving them
the tag of advanced work
stations, with the aim of getting
the executive — whether his
discipline is law, tax, engineer-
ing or marketing— to become
more involved in the computer
side of the business.

To attract business users the
microcomputer manufacturers
have realised that their systems
must be simple to operate with
computing languages which
have ordinary English com-
mands.

In addition, a major selling
point will be the ability tol
carry out several tasks simul-
taneously. Another attraction
for customers is a good graphic
capability. .

Today few machines meet
these aims completely although
some nearly do at prices which
are a fraction of the cost of
their minicomputer rivals.

Word processing, financial
and management p lanning ' are
among the more popular appli-
cations for the microcomputer.
Increasingly there are demands
on suppliers to offer better
g r a p hi c s packages so that a
manager can present reports in
a more visually appealing form.

When the prices -of acoustic
couplers — which provide the
link between a computer and
the - telephone network— fall,
the potential for communication
between microcomputers and
larger data base information
computers such as Prestei and
private viewdata systems are
likely to be fulfilled.

Analysts reckon that there is
a trend towards work stations—
bsrad on 16 bit micro-
processors — -which began with
the. introduction of the TBB1
personal computer last year.
This has been followed by intro-
ductions from Tandy and more
recently DEC with its H rainbow

ma chin e.**

To con dude, it seems that the
advance in microcomputing is
simply an extension of the sort
of developments which produced
the minicomputer out of the
large mainframe systems. The
big reductions in costs which
have resulted mean that the
decision of which system'to buy
is based increasingly on the
availability of software for the
machine and its suitability for
the business application.

: - - - -v,...

■

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i.% „ .

Olivetti, among leading data processing equipment suppliers in Europe, feels that
and micro can live alongside each other** and this is why the company has recently extended,
its product line with the inclusion of the 9X20 personal computer, above

Bureaux offer “ worry-free computing at a. price you capt afford 9 -.
Some will give you your own machine Alan Cane looks sit *
the variety of services now available;

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TRC 5600/TRC 5400

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1000 X-

** 5,1

SANTO GIVE XXI AILTHE MATHINFRYOF RI ISI NFS S

These are just a few of Sanyo’s business machines; all made to make
your business more efficient. From the basic calculator to the sophisticated
micro compute^ you . won’t find more advanced technology What’s more you
won’t find better value.

If you’d like details of the complete range fill in the coupon below

She Sanyo, T?-en Decde* sanyo

Please send me full details of the Sanyo 19S2 Business Machines range. I am particularly interested in ^please tick)r-

Micro .computers □ Calculators □ Telephone AnsweringMachinesn Electronic cash registers □ Dictating and transcribing machines □

Name! Company Address ‘ : -- — T^I NJn —

Send.to Marketing Dept; Sanyo Marubeni UK Ltd, S Greycaine Road, "Watford, Herts, or TeL- Watford 46363.

big changes

THE SMALL business systems
market hardly existed a decade
ago. If a company wanted to
computerise its operations with-
out going to the expense of a
mainframe computer, it turned
to a bureau, an organisation
with its own computer and com-
puter staff which was in busi-
ness to sell its commoting
services.

There are still attractive argu-
ments for using a computer
-bureau today. Mr Nick Schol-
field, main board . director -.for
CMG, one of f the" UK's most
active computing services com-
panies points out that' coming
to terms with a computer places
a heavy demand on htunas
resources. * . - - .

“ By and large, it Is still true
that, no matter what claims are
made for ease of use is any
system, there will have to be
a considerable investment in
time.. Now companies are in
business to sell their products
rather than administer .com-
puter systems and, when a’ com-
pany is - small and growing
quickly, time will be at a
premium.

. "The smaller systems, with
their comparatively; restricted
range of operations, will prove
more time-consuming than -the
larger systems."

The bureaux argue they can
offer their users freedom from'
anxieties about technology and '
about operating the system.

Mr Rick Whiteman, marketing
controller for Centre-file, the
National -Westminster computer
bureau subsidiary and one of -
the largest payroll operations
in the country, says; “A bureau
user gets a total service. The
bureau will provide' both hard-
ware and software- 1 It- will
implement the system and pro-
vide maintenance; It will
continue to hold the customer’s =
hand and -provide the necessary ■
support if anything goes *
j wrong.”

But the bureaux are going
through major changes forced
on them by the falling cost
of computer hardware. When
the physical computer was
expensive it made sense to go
to a bureau for computing
power. When a computer can
be had for little more thap
the cost of an accounting mach-
ine. does the same logic hold?

the other hand, can see. their
profit margins eroded as hard-
ware costs fall and they are
moving into services to main-
. tain profitability-.'

Forward looking bureaux now
offer permutations oq at least
six basic services. •: -

• Traditional batch. This is
the oldest of. bureaux services.
The customer sends his. busi-
ness information to the bureau’s
computer centre where It is
coded, processed and returned
-as : computer print-outr 7 : ' r
. #. Remote batch. . A principal
trend in -bureau . computing is
teleprocessing. The customer
- has a terminal bn his premises
which is "used to send business
data over the telephone lines
to the computer centre. Once
printed out "at the centre (now.
that high-speed jage printers \
are in vogue, neatly printed A4 .
sheets are replacing unreadable
continuous . stationary) or sent '
back down the : lines to': be'
printed out on the customer's "
own printer. - -

Information

Competition

The bureaux have found, to
their ebagrin, that it does not.
Growth rates for the bureaux
business have bees less than -
for the computer industry in
general over the past few years,
despite the fact that there is
plenty of work about.

The main competition for the
bureaux these days, in -fact, is
not each other but' the company
which wants its own machine.

So the bureaux have
responded by supplying their
customers with- machines in a.
variety of guises. Mr Philip
YValnwrigtat, managing director
of Geost Computer Services,
says: *“ Two years ago, we were
100 per cent bureau. Now about
halE our turnover comes from
j hardware sales.**

But all the sensible computer
companies have realised that
what the customer needs most
of all is hand-holding. So the
bureaux sell hardware but
promise their traditional cus-
tomer services in software sup-
port and maintenance on top. It
may cost more than buying a
computer from a high, street
store but most customers Should
be prepared to spend the extra
for peace of mind. .

Computer manufacturers, on.

0- Interactive: This man ns tfie
customer is able to hold a
41 conversation " with the bureau
computer using his in-house
terminal. ■ The customer can
. ask for specific pieces of j nf or-'
mad on. use modelling programs'
to test business strategies and
bring his files up to date. It is
more expensive than batch or
. remote batch— but the . service
is instantaneous.

• Computer provision: This
can take several forms: • The.
. innovator here, was . 'the *. XJ.EL;
bureau -ADP which toofc the
bold step a few years ago of
offering its customers ' a small
main fr ame— the - DEC 20/20^
on their own. premises: The
name ADP gave- to this
approach, “ On-site,** . has
become virtually generic in - the
industry.- -.-

Now bureaux are offering
small mainframes, , minicom-
puters and micros as ‘adjuncts
to their traditional services.

Geest, for example, has -just
launched its. own microcom-
puter, a small machine which
can handle up to four screens
Built by NNC Electronics of
California.

The company has taken what
might be seen as a novel
approach- — the machine handies
data bits only eight at a: time
compared with the 16-bit
machines which are' at the
sharp edge of the technology
these days. Mr Wainwright. of

"I** looked a t *0-

16 -oit alternatives and decided-
would be better off with an
S-bit machine, especially
because of all the software that
has ' already been written for
these computers.

. UT !?£ computer Is already in
use with the U.S. Navy and it is
very reliable. Furthermore,
when the time comes it can be
upgraded to a 16-bit machine."

Giving a customer his own

- raachine solves two problems. It

■ puts -a ceiling on the amount
! the customer has to spend with

■ the bureau .as the machine Is
fixed-cost while bureau services

r tend ..to bq .related Jto central
: processor usage; and It keeps
the customer in the bureau fold.

. . Everybody with V computer
system runs, out of' capacity
sooner or lpter and the: bureau
is' there ready to offer advice
and computing time to overcome
the crisis and an upgrade to

- •. Computer share. ' lris is a
variation: both , on cobventimial
^meebaring ited machine: pro-
vision. The ' bureau owns and
operates the computer—often a
small machine' such as a Texas
Instruments minicomputer or a
DEC— and sells or leases a fixed
, proportion -of the machine/ to
. the. customer. . ' 'S!

... The icustaxjter. his-'as much
' use' of- his "portion --.of -the
machine a$ . he' wants. . Again,
“there Is a ceiling bn his costs.
When he.runs^out of capacity,
•'the bureau, can -provide him
with a turnkey system based on.
■the same machine that tie had
been using: So the customer gets
computing experience in a com-
. paratiyely painless way and the
bureau keeps another customer
away from the computer distri-
butors. ' ." v-
v* Turnkey systems. This fe a
term for the installation of a
total r computing system, hard-
ware and software complete and
ready to run “at the turn of a
key.? The turnkey- machine is
often the Same at that used' hy ■

- the. bureau so a customer start-

■ Ing-wi£t a bureau I Service lias-
no learning Curve to ascend bn
taki ng ~ delivery * of his own
system. Centrefi le. fpr example,
nips, its Jhteractive.-..gerrice
Tim dink, on a big DECTminf,

. tfceJI/70: It “will prayide^tani-
key systems based oh-jthe It/23.

Ingenious

-This, list -of -six Is : not
exhaustive and bureau operators
.are ingenious at- ^ringing -fte
changes On the basic variations.
There „ -" IS, for example,
facilities management where a
computer owned by a company
Is. operated by the bureau on
behalf of the owner— including
selling off spare capacity at a
profit

■ Mr Rick Whiteman, who 'is
chairman- of the Computing Ser-
vices Association Bureau Busi-
ness Interest Group as well as
: marketing controller f os Centre-
file says that an organisation
like Centreffle is equipped to
deal with 1 payroll for companies
with as 1 few as five .people or
with less than £100,000 annual
turnover;-;.

*• The ‘kins of customer who
could make . use of a small busl-
neiss system Ss still, despite all
tlxe publicity, often wary of
computers. For such a customer, -
a bureau. - could provide the
answer. Says Mr Whiteman; .
"A new user has a. lot to learn."

PROFESSIONAL SYSTEMS FROM POSITRON

lf y??. * 1 ?** * mleroconjpntBr system that : ' ■ y

easily as your reqolremants grew -.

—allows several users to work simultaneously • - ~ -

tasks concurrently

. " ord Proce^t virndaB, P ratd

bu,,e ^ su PP° r *«l tn the UK •

THEN RND OUT MORE ABOUT POSITRON STSTEMS
POSITRON COMPUTERS LMmED

u Deacon Trading Estate - -

Newton-le- Willows,' Lancashire WAT 2 9XQ
TeL 09252 22828

{

M

T

Pwandal Times Tuesday June 3 1982

m

SMALL BUSINESS SYSTEMS m

Effective, trouble-free software is the key to small business computing

Important questions on software options

IT WOULD he very useful if.
the bustoessmen. wtjo are carw
renfly their first;

computer -system^could learn &
lesson fcomUie past

It should ‘be easy enough. i»
look back to those larger com-
panies that pioneered automated
business systems, scale the prob-
lem down a bit, and 'derive, a
feasible formula for success.

Many of the business ptrbb--
lems are the same, small and
large companies operate ah $hB
same environment asd x hey 'are
increasingly lurmag to the same ;
machinery to solve their prob-
lems. .

That madJineiy is,' of course;
the. microconrpu ter and the.

problem that confronts aH busi-
nesses 'fe' that .of getting it to
contribute cost effectively to the
running of the business.

The" fact that many larger
companies are buying in micro-
computers, ^t. least as an addi-
tion to their larger machines,
suggests that 4he past perhaps
has no lessons- to give. .. .

If the pioneers of computing
have solved all of their prob-
lems why are they buying yet
more computing power? -

What makes it difficult has
nothing to do with the
machinery, however. It has to
do with the driving force within
the machinery — the software. .

AH machinery requires grad^
ance from a human agent In a
motor car This takes the form of
direct handling of the controls —
the human agent has the oppor-
tunity to guide the vehicle
“bands on” or "on line." A
computer is not as flexible. Its
guidance -in the form of pro-,
grams (for which software is a
collective term) has to be given
in advance. ■

A brief contemplation of slB
of the gear changes, steering
wheel movements and so on,
needed to guide a car on a short
shopping expedition, will give
some -idea of how complex a
program can be..

The story does not mid there.
A computer program is only, a
translation of something far
more formidable. In a business
environment' it is a translation
of the business system into
static, mathematical terms.

: So, before writing a program
to, say, print a list of custo-
mers, a great deal of work has
to be applied to understanding
the way the customer lists works
— questions .such as: ..what

length is the customer same?
Should the address be ipduded?,'
Should 1 they he ported in tdpfc*
fatettdal order, account number
sequence or by "geographical
region?

.AH these questions need to
be asked. This is traditionally
the role of the systems analyst
who, ia consultation with the 1
people who will use the system, .
takes, all of this information
and moulds it into s coherent
fbrm. A significant number ot
steps later; this, should emerge ;
as the system . that the user
wanted-

Many larger companies are
turning to microcomputers be-
cause Often the system was
nothing ' like what the user ,
wanted. .They are presumably
in the same position as the
small business approaching
automation for the first time,

Alternatives

There are three : . major
options open to both groups -of
people.

* They can look -for a soft-
ware package — a sort of do-it-
yourself kit with all parts and
instructions supplied. -

• They can grit their teeth
and do it entirely on their own.

• They can purchase the ser-
vices of an expert

Software packages for micros
offer the same advantages' as
those on laiger machines. They
usually comprise a set of > pro-,
grains thrown together 1 under a
heading such as. "accounting,
system” or “stock control” a
manual on how to set the pro-
grams up and a telephone num-
ber to ring in case of- trouble.

They vary in price from a
few pounds to a few thousand
pounds and cover-most common
applications by now.

Their main advantage is that
they have been tried before
and cost little, relative to the
price of the machine.

Their .main disadvantage is
th a t, they are not very flexible
and sometimes do not fit the
business problem they are im-
plemented to solve.

Since changing a package —
even in an apparently trivial
way — means bringing in the
expert, packaged software, must
be pretty much what the user
wants to start with — or it can
prove very expensive.

Expertise is always costly and
the demand for. good software

expertise at the moment makes
it : doribly so..

- ' M aking an inflexible software
package fit, requires good soft-
ware expertise.

So,- of course, does the third
Option that is open to micro
users. 'Where there is no pack-
age software available, it will
usually be the first choice and
is sometimes called “ bespoke ”
software.

Traditionally, a software con-'
sultancy would wheel in a whole
hierarchy of experts to build a
-bespoke software system. - A
senior consultant will arrive and
assess the direction of the com-
pany, its policies, its manage-
ment 'and the problem to be
solved. ,

After due deliberation he -will
produce a feasibility study,
making recommendations on the
type. of machine to purchase, the
cost of programming it and
many more detailed proposals
right down to where to put the
visual display units.

He will be followed by a pro-
cession of analysts, designers,
senior programmers, pro-
grammers— all dedicated to
solving the problem.

In the early 1070s, tihs would
have cost anything from
£20,000 to £Jm. Relative to the
cost of the machinery, this
would bo seen as a necessary
though trivial outlay.

Rut now that machine costs
have Come down so much, such
figures are scrutinised far more
closely and every effort is made
to keep -them as low as pas-
- sible.

Despite this, they are still not
low enough to appeal to the
small business purely from a
cost point of view. This as not
the only way of doing it —
programs can be written by less
expensive organisations.

Mr John Hale, who recently
made the- transition from the
established data processing com-
munity to become managing
director of -the Maidenhead-
based micro-package vendor,
Peachtree, reckons this to be a
good option.

“There are two types of com-
puter hardware dealer emerg-
ing. The first is not interested
in the software at all and will
just sell the kit and the pack-
ages. The second offers some
sort of programming expertise,”
he commented.

Mr Hale went on to warn
against trying to modify a pack-

age too much: “ You could end
tip paying more for the soft-
ware than the machine.”

The second option— carefully
left until last — puts the onus
fairly and squarely on the
shoulders of the person who
wants the system — known to
computerese as the “ user. ” As
might be expected, all of the
experts agree that this is not a
good thing. •

The arguments against bond-
ing your system from scratch,
without the help of expects, are
overwhelming.

Mr Peter Hewitt of the highly
successful UK firm. Microfocus,
commented: “I do not believe
in non-software people building
systems. The people who have
been sitting down with the prob-
lem for the last 15 years have
enough difficulty getting it
right. There are just not the
tools available to do it. ”

■ Mr Hale added: “ I am not
convinced It is viable — why
should programming a micro be
any easier than a mint or a
mainf rame. Even implementing
packages people underestimate

the time required to get it
right”

Roth Peter Hewitt and John
Hale admit that they are
prejudiced — after aU both of
their companies specialise in
selling packages.

But then there are packages
which supposedly enable you to
build your own system without
recourse to experts.

Phenomenon

Last summer saw the birth of
a new phenomenon on the soft-
ware scene. Nobody had thought
to apply the full - marketing
treatment to a piece of software
before the Last One stole the
headlines.

Purporting to offer the final
solution to the programming
problem, the Last One excited
interest throughout the com-
puter community.

The excitement was inten-
sified by keeping the product
secret until the very last minute.
Rather than being the final solu-
tion, the package turned out to
be merely a rehash of an old

idea that had been tried put foe
some time -in the .established
computer industry.

In the long tend, there are.
possible solutions .beginning to
surface which might make it
feasible for the user to do it
himself. The sort of initiative
that the Japanese have taken in
attempting to build “ in-
telligent” machines in the
Fifth Generation project could
lead to computers which not
only program themselves, but
also aid in the design process.

In the short term, however,
there are no instant solutions
and the microcomputer user is
stuck with buying a package
that “sort of fits the job,”
spending a great deal of money
on experts or spencting a great
deal of time on learning about
the craft of budding software
himself.

There is, of course, a further
option. Forget about computers
altogether— sometimes this can
be the most practical one of ail,
though it is likely not to be so
much fun.

Philip Manchester

The IBM Personal Computer becomes an individualised
word processing centre with the addition of ' its optional
printer and test management software. It will store letters,
manuscripts and other text for on-screen editing and rapid
reproduction on the printer. The system can also be used
for accounting, mathematical and home entertainment
applications.

Richard Sharpe examines the ranges of packaged software available

Five rules for prospective users

RtTSINESSMEN do not make
the capital investment in a
small business computer merely
so that they can set up a data
processing centre with opera-
tors, programmers and data
processing managers.

The motivation of customers
in this fast-growing market is
to gain, as soon as possible, the
increased business productivity
that computerisation promises.

But the actual small business
computer that Ihey buy — the
screens and keyboards all ran
by the processor and storage
devices and printers— is so
much scrap metal without pro-
grams (to use the computer
industry spelling) of instruc-
tions to undertake toe work of
invoice generation or payroll
calculation.

Small business computers
come with their own program-
ming languages^ special dialects
of instructions which can be

strung together to get the
desired output

Writing programme, however,
is a costly and time consuming
business— so costly and time
consuming that it has become
a major headache for big com-
puter users across the world.

How much better, therefore,
that the programs of instruc-
tions should already have been
written for the particular appli-
cation that the user wants.

Such prewritten programs'
are called software packages
and an increasingly large range
of them are available on the
small business computers now
on sale.

Accounting is the single
biggest problem that small
businesses face, so it Is natural
that tire greatest variety of
packages for small business
computers fall into this area.

General and purchase ledgers,
accounts receivable, accounts

payable, asset accounting, bill-
ing and fully integrated account-
ing systems are all regular
features for small business
computers.

The best packages, from tire
user’s point .of view, are those
that are easy to install, flexible
and easy to run.

Installation of a package often
means that the users must
deride, in. advance, just what
they want from the package—
TTofW‘ they want 'the screen .to
be laid out in what order they
want their printout at what
points they want to be warned
about inventory levels or credit
overruns.

Choice

In choosing a snail business
computer, the vast majority of
users have found That it is best
to choose the software before
deciding on the actual computer

which will run the system —
that way they get the packages
they want The packages which
will best fit into their existing
business routines, instead of
getting the packages that
happen to run on the most
attractive pieces of computer
equipment

As the package is pre-written
at is not built to each user’s
specifications. It is just like
buying a suit off-the-peg— if the

user’s existing business routines —comments. -

over the years, learned to seek
out gxfetiug users with the
same type of demands to see-
what type of packages they
already use.

Equally, prospective users are
well advised to see a complete
run through of the proposed -
package before committing
their organisation to it; this
should include showing the staff
who wall be working the system
the proposed package for their

are standard then the likelihood
is. that the package will not call
for a total upheaval of office
routines to accommodate toe
new small business computer;
if, however, they are routines
refined to the user’s particular
needs then the package will face
the user with toe task of fitting
into its demands rather than
vice versa.

So, prospective users have.

CONTINUS) ON NEXT PAGE

The range of packages «
growing all the time. One iff
the standard reference books for
packaged software, the Inter-
national Directory of Software,
listed over 4,000 packages for
all types of computers in US
latest edition. Over 2,600 <ff
these packages are pre-written
programs to ran user's applica-
tions, the others are routines to
control the computer or get the

“But I’ve already got one ... my secretary?
you may be saying.

True, but does she have the time to give you
all the help you need?

Many secretaries are so bogged down with
day-today correspondence, reports, minutes and
so on they just don’thave the time to be personal
assistants as well.

We don’t think a person in your position

should have to
worry about these
problems.

So we’ve come
up with the answer.
The new

S||§§§|| Bitsy Secretaire.
Thisisa

specially developed,
wordprooessor which can speed up all routine
‘chores' quite dramatically, so your secretary will
have plenty of time to give you all the help you need

With a minimum of training she can produce
letters, reports, minutes with much less effort

Andlike our othersystems, we’ve designed
the Bitsy Secretaire with the secretary in mind

It’s simple to learn, has easy control
instructions, even a special screen with brightness
control that tilts so your secretary can adjust it to
suit herself.

So don’t letyour work get on top of you.

The Bitsy Secretaire will give your secretary the
time to be your personal assistant After all.. .you
deserve a helping hand

FT8/6/82

1S/L

XT I E S

IMPSaM

INFORMATION SY5IHVIS

' - 1 Emancial .Tur^ lhxesday June 8 19^

SMALL BUSINESS SYSTEMS IV

Guy Kewney looks at the changing picture in. coinputer retailing

The computer that grows
from a promising junior to
a seasoned executive

Tf your company’s annual turn-
over is between S,Vsai an d £1 0m,
then your accounting, distribution
and inventory systems wonld
benefit from an in-faonse
computer.

Fot you in particular, the cho&P of the
right computer may well have pxipved a
problem. You need more than a ‘detsk- top*
computer, but don’t require, nor do you
have the expertise to operate, a mainframe
installation.

Your staff may be hostile to
an unknown technology that . /> ■

thwatens to outpace their own
abilities.

Q early what is needed
is a system that is flexible,
able to be installed at any / ( *1 iyv y.

size, yet with the potential to. grow - a
Systran is not only easily understood
and used, but extends the capabilities of
your staff — -perhaps most important, a,
system that can be tailored specifically to

m

•■m

£

ss

Tnvector can provide precisely the .sj
It combines the CLAUDIUS progra:
Accounting, Distribution and Inve
withonr own British designed and
computer TRITON 4A.

m

from a basic single terminal, single
printer installation to one xrith 328
Megabytes of memory, enabling 16
t ermi nals and 8 printers to be used
simultaneously for individual
Phone, write or send olf the coupon
and we wifl arrange a demonstmann
in your office.

GmunerceLil

Sunderland Road, Sandy,
Bedfordshire S GljllR B
Telephone 0767 82222
Telex 825478

H Pirxae said me fuU information.

X

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m

Company.

Address-

ai°g

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WHY YOU SHOULD BUY
A BUSINESS COMPUTER FROM

A COMPANY YOU
PROBABLY NEVER HEARD OR

CONTINUED FROM PREVIOUS PAGE

tr r

*** w "*-

BECAUSE TELEV1DE0 SYSTEMS DELIVER MORE PERFORMANCE AND
RELIABILITY FOR THE MONEY THAN THE COMPANIES YOU HAVE HEARD OE

TeleVideo: The growing force In tasinesscompt^^

In three short years TeleVideo became the numb er one indepen-
’ dent supplier of CRT terminals in the U.S. *
b We did it by adhering to the philosophy that simple design
and high quality components increase rdiabiliiy and decrease
-price.

TefeVideo is now entering the small business computer maricet
We intend to repeat that success with the same basic philosophy

The IS 802. Your first serious computer.

The TS 802 can store up to 250 typewritten pages on each of
its two removable diskettes, and can type those pages out at
a rate of at least one line every two seconds. Keep complete fay
H and payroll records, allows you to print checks, maintain a-geseral
“ ledger and tabulate up-to-the mmute entries into aaxjunts
payable, receivable, inventory and sales order processing. Help
with budgets, forecasts, and job estimates, in short, the TS 802 •
quickly creates and conveniently stores the documents and .
reports you need to run a business effidentiy
But if you need even more storage, the TS 802s brother— the
TS 802H— gives you ten times more storage capacity
- Both the TS 802 and TS802H have all the main memory you
need for your business.’ Both indude the CRM* operating system,
which gives you access to more software programs than any .•
other operating-system. And both work with a variety nf p mter s
and phone modem s tha t transmit data by phone.

Computers that grow as yougrow.

The TS 802 and TS 802H are single user, stand atone computers.
Ifet when plugged into TeleVideo's more powerful TS 806 dr
TS 816, they become iniseffigenl satellite temtiholsmalBiOT'
multiuser system. This protects your original investmentbecarise
the TS 802s do not have to be replaced by a larger computer
as your data processing needs grow.

Worldwide service.

TeleVideo's computers are serviced by dealers and distributors
throughoutEurqpe. . .

For more information about TeleVideo computers or the fwma
& address of your local distributor contact:

‘ip,

2J*t * f J , V. V

si % -

.'••VWwPSV'wJi.;: . .* :*<!■&*???«; VT;.*x^.' • •>*» - .1,- '■ •

zm&h:-.

• 7 ' Vi.-f'.' ' • • v,i,r ■ “

: iv-:.;*:--

-■"v T ^ u * ' ■

MIDLECTRON
Nottingham Road,
Belper, Derby, England.
Belper (077 382) 6811. :

EN(X>NTEt
530 Parley Way,

Croydon, Surrey, England.
01-686 9687.

CT/MI»«. i | wgW «rw< L t wAtTiift o<P Iu]talI> i«i«r eli 'b«.

optimum performance out of it.

From these 2,600 a^licaticms
pa^ragra, tire ones that will
interest fee small business com-
puter user, 1,788 fall under_ the
category of accounting, adminis-
tration, production and distribn-
tio® packages.

*niey range from fixe account-
ing packages listed above to
performance analysis, for which
there are 36 padcages, export
and import administration, for
which there are nixie,, through
telephone usage analysis, 14
packages, to hire purchase and
lease accounting; 17 packages.

The directory is published
every two years and since the
edition before last the entries
under this category have grown
by 32 pec cent, a sign -of the
popularity of these types of
packages. But, in the two years
between editions, there has been
a high fan-out rate of both sup-
pliers and. packages; only 60 per
cent of - package suppliers'
responding to the directory’s
survey In September 1979 also
replied in September 1981.

. Users' are - therefore tending
to concexxtraite their purchases
on Ihe more stable suppliers f as,
during their use of the com-
puter, they may need additional
developments in business prac-
tices incorporated info the
package.

The 'choice of package' is also
the choice of supplier, which
should prompt a dose investiga^
tion into the viability of the
supplier along normal commer-
cial tinea, .

A com p le m entary 'source of
information for prospective cus-
tomers is the National Comput-
ing Centre (NCC).

The NCC responds to requests
for information from Its sup-
porting'members but also offers
an information service from
non-members on a fee basis.
Enquiries about software are
currently running, at: 3,000 a
year, according to Mr Roger
Brady, head of the NCCs infor-
mation services. And the
majority of these 'queries come
from, users or prospective users
in the small business computer
category, he added.. .

The NCC holds - a detailed
database on 3,000 packages for
all types of applications. While i
the- majority of entries in the
NCCV package database are oh
the standard accounting appHcar .
tions, it also, has information on
fixe general packages which wiH
ssdle files of any type of data
- sorting, indexing and retriev-
ing the records in files built up
by users over a. period of time.

In the past few years, package
vendors have tended to carve -
out a niche of the market for-
themselves, avoiding the bruis-
ing battle of competing with fixe
thousands of accounting and
administration packages for
general business use and going
after the specialised business.

Jewellers, for instance, now
have a- package that can ran on
a popular mini computer while
solicitors can set their time mid
materials against clients with
another. This specialisation has
even^ reached the -level where
suppliers of amusement
machines can load a standard

package onto one of the more
popular Tni-ni computers Kid be
given regular print-outs on the
“ taka '* . for each machine .set
agaihst tfo rental while calling
up on- a sCteon data about cash
collection, VAT payments and
cashflow.-!'

-While any number of pack-
ages on the market may fttffil
file user’s .needs today, the
more forward user tries to
Judge their needs tom o rrow.

They do not, for instance,
want a package which wiH
serve their purposes for the
next two years only to leave
them- high and dry because it.
only runs on a computer which
will rapidly be out.of date -

Users can also be drawn into
a dead-end when they try and
add another package alongside
their first choice only to fold
.they cannot band^ records one*
to the other and a lot of pro-
gramming has to be undertaken
to' obtain the two packages
working side by side on the
same information.

The computer language in
which the package is written,
although .of no immediate con-
cern for the user, is an impor-
tant criteria. The coxnputer pro-
gramming language, Basic, is
the most popular for smaller
computer but it. is now increas-
ingly evident that Baric pro-
grams are not easy to take from
one computer and run on
another,

. The older, and more estab-
lished language for commercial

applications, Cobqf, is fijeref ore
becoming a popular, ipedium
for pac kage writers and Corbel
progrants are generally easier
to transport from one *"*"bt«*
to another. - . . ~ -

-• Thu criteria of I&nguag& j»
important foe foe ‘prospective-
ofthe package that is- already
written and'-even mbm- fiirj w.
taut for the customer who com-
missions 3r company to ' wri t e a
package for them. ^ .

'1-. In the lastrfew yeara snujS
busmesses with- a '' common,
interest ««* .as estafo -ageufa
ot ■■ .mxgineermg ; companies,
have cwnmissicaied ’ ' software -
houses to write a. package -to
tfarir general ' spedficatios
which is then used by rii :fi».
companies in a "group.

So, if you cannot gwT +Vii.
package you need today enquire
among companies in a similar
business to yours and you may
find others .who aie wHHwg to
sponsor foe ww*.;: ' .

In P™sP6ctivB ’carto«ners
ctf packaged software foe small
ousmess computers should keep
are rules in mind '■ when
rimostog- from : the : many
founds of packages avaflritie.

• totie one, which foouid never
oe oroken at any cost, is to see
th e p ackage running nn the
computer, '-.you ■ intend^ to get
before finally committing to it,

• Rule two is to judge if the
introduction of the rou tines

CONTINUED ON ’

PAXX VI :

MIDLECTRON

Is proud to have been appointed
SOLE UK DISTRIBUTORS OF BOTH

SYSTEMS & TERMINALS

VALUE - FOR - PRICE - WORLD - LEADERS

OEMs please contact

Midleclron Limited

Midlecbon House-. .

: - Nottingham Road

Belper/ Darbys

td: 0,7382 68 " I’ Telex: 377879

Times Tue sday June 8 1982

SMALL BUSINESS SYSTEMS Y

Western European installed base
s * ,are by vendor

ftgittes fm- year'end, lfttt

?*i 5£*«e

5t 6i; fi ‘ r ^

rs

f *4^2

Si^ss

?£?:§

r

»onf"c x **
«racn' s ^l? 5 ?

5- A*?* .

-.Jj® •
■<*. .vV;'^
ar^?*
? st '“-a”y JL .

3V "i 3 rfi. UW “
*

'- -Jj **>
e ;„*^

w4

„.; ** ? wfrr

v^z i

••■ e ?US« *

2;-. ' £ -^m

^ ■' n - r *‘ *”»

3 ,c ■•v*- mg

""«=* b*

T *• 7 -'jc- *-*,

^fr's? n
?" r -* saw

■i ° r -:« i.

=" “-0 s
’ ■'•^ “Vr?r •«

, c ’.'" i fttfi

l/v^v-

wr.'.

i iriT? («■!

"?■'•■' rv -' wpa

tnse

:?-■■ -r: :■}?:
;r-* ril'y nfi?
t. ■'.>: *** * •* *-

rS ".snruizj 3
r-jt* T-f.-MCT

:;u’':i ilws

1 f “■• -.re .“■■/
rrs?: v: m ck-
?.r.v ■'■ wr»i

$v v;«r*
s -■;•.•:£ s;C- 5

ixW

! A ' 3

— v 5-i •-'■!

-: eSS*

. . ■••*• :*
t\: .r a ■— r —

*- i-d y-K

i -.-* vrlii’i “*

*" — v:.r-

, ‘--o 3""

sjctj 3N
I VI

gar

ffixdflrf
T-A. •

Burroughs

Fhflips
PEC
-CTM ,
■ Ericsson : -
Lagabax
Often
TOTAL

Units

Installed
22,60ft .
48,525
13,050
34,430
13J190
8,310

7.971
6,641
4,785
4,499
5^55

1.971
4,700

1&265

105,792

% share Value $m %ibui

Source: International Data Corporation.

Louise Kehoe in Califonda looks at the impact.
of!64)it microcomputers

WHEN does a personal com-
puter become a useful business
machine?.

■ The answer,^... which is
beginning to emerge in the U.S.,
is when it has a 16-bit micro-
processor hidden inside. The
latest microcomputers offer per-
formance previously associated
only with larger, much more
expensive- minicomputers and
they add new dimensions to the
use - of - microcomputers in
business. '■'...

Over the past year, several
hew 16-bit microcomputers have
come onto . the. market 2BH
opened the gate last, year with
the introduction of its* “ Per-
sonal Computer.”

New companies like Fortune
Systems of California, followed
with high performance

machines that redirect the
microcomputer towards the
busi n es s user.

Digital' Equipment' Corpora-
tion recently- added its. “ Rain-
bow 100 ” 16-bit microcomputer
to the growing list, and Tandy
made its bid for the corporate
market with the announcement
of .its “model 16."

Commodore iir another per-
sonal computer. ; manufacturer
that -is ”gBwdiig>:ti|» i *'-'hitO;. : ilie'
16-bit high performance arena
from its base in home' com-
puters.

The significance pTthe 16-bit
chip goes far beyond the.teclK
nical advance of cramming a
bigger computer- onto a tiny
piece of silicon. As compared
to tbeir 8-bit predecessors, the
16-bitters are faster and much
more powerful. Thar speed
comes from the fact that they
process twice as many “bits"
of data in a single cycle. The
power stems from ' their
capability to “address” more
memory space.

Performance

The biggest upgrade in per-
formance comes from . the
“multi-tasking” and. “multi-
user ” aspects of these systems.
They nan perform. several tasks
at once. A single 16-hit micro-
computer-such as the altos
system, or the Tandy model 16
—can support up to three
users, all simultaneously work-
ing .on different jobs, using
terminals connected ot the main
computer.

Alternatively, a single user
system can concurrently per-
form several unrelated tasks.
One user might, for example,
want to print -a letter, compose
the next one and send a message
to another computer, all at the
Bj*rng- time. ...

Such multi-tasking systems
extend to up to 16 operations—
aH being performed simul-
taneously. That might sound
excessive, but an examination of
work routines quickly reveals
that It is not. « „

In practice tins means , that
16-bit micros can handle more
complex computational prob-
lems. That may not seem to be
too important for. office applica-
tions of computers,, but it is.' The

programs that control the inner
workings of the microcomputer
— can be much _ . more_
sophisticated in a 16-bit machine
because there is more storage
space available to hold them.
While the standard operating
stems for S-bit micros, such as
used on the original

to establish the «e of the
machines in both office • and
home environments, ■ the
operating systems developed
for the 6-bit machines enhance
their capabilities substantially.

Such multi-taSklDg systems _
extend to-up to ie operataoi^-
all being performed . simultan-
eously. That might soling «ees^
sive. but an. examination. • of .
work routines quickly reveals
that if is not • . _. . ..

Few executives can afford tne
time to concentrate solely on
one task at a time- example, ■
the marketing manager prepay
ing a report will need to break,
away from writing to find some

dnra. He may be interrupted to
answer telephone caHs—wJu«-

may also require hmrto. iook
for information in his mes. m
the midst of it all, he may. want
to work out how various market
projections will r impact sales,-
send memos — and so on. .

A host of suppliers seeks to dominate the small systems market, Jason Crisp reports

le race is on among manufacturers

■. SCARCELY a week goes by
without the launch of ypt
- another small computer system.
Since many of the potential pur-
chasers of these systems have
probably never owned a com-
puter before— indeed five - years
ago they wourd not even have
dreamed of one — confusion is
rife.

The range of companies offer-
ing small business systems,.
. from smaH mimcomputers to
micros, is equally bewildering.

: At one end of. the scale there
.are -the U.S. computer giants
at old, like International Busi-
ness Machines (IBM), Bur-
roughs, Honeywell Sperry and
'NCR, and the European manu-
facturers like ICL, Philips,
Olivetti and Siemens.

Then there -. are the fast-
growing minicomputer manu-
facturers like Digital
Equipment (DEC), Data
General, Prime, and in the UK
SystSme. And while well-
established, if youthful, micro-
computer companies like Apple,
Tandy and Commodore surge
forward, they are joined by new
companies with potentially
staggering growth rates like
Fortune Systems, Osborne, Con-
vergent Technology and Altos
Systems.

In addition there is a host of
coaapanies offering software for
the better selling systems toe

quality of which is somewhat
varied. . Rut good, software
can prove to be' a major stimulus
for model’ssales. Apple's sales
were boosted by toe Visicalc
programme which enabled a
person to perform financial
analysis on a personal computer.

While the prices of small mini-
computer systems have been
falling . some of toe more
dramatic moves have come in
the smaller personal computers. :

IBM’s move •

1 The most significant — and
most feared — entry into toe per-
sonal computer matket last year
was IBM., It unimaginatively
called its personal computer
toe Personal Computer and it is
selling in the U.S.. directly and
through retail outlets like Sears
Roebuck and ComputerLand, at
a basic price of $1,500. In
typical business configuration
with two floppy diskettes and a
printer the price is around
$4,500. The Personal Com-
puter is not yet officially avail-
able in Europe although a few
have been purchased from retail
outlets and been said in toe
UK Italy and ether -European
countries.

The most dramatic entrant
this year has been DEC. The
minicomputer giant launched
three micros — DECmate H,

fPil

ICL has now started manufacturing the powerful Perq
microcomputer system, above.

Rainbow ipo and the Pro-
fessional — of differing power
and performance starting at just
.over $3,000 for a basic system.
The computers arc being
launched in toe U.S. and Europe -
in the autumn and with a tow
price toe waiting time is
expected to be long. DEC has
said it wants to capture 15 per
cent of the rapidly growing mar-
ket for desktop computers.

As the world's second largest
computer company, it was
founded 25 years ago, it has an
extensive sales and service net-
work — one of the keys to
succeeding in small computers.

And while DEC has been criti-
cised for being late Introducing
a personal computer many
analysts have predicted it will
become a major force.

Both the IBM Personal Com-
puter and DEC’S Rainbow and
Professional are Ifrbit com-
puters which make them signifi-
cantly more powerful than most
personal computers available
based on 8-bit processors.

Several small fast-growing
Californian companies have
created a new generation of "the
16-biit “super micros,” like
Altos, Convergent Technology
and Fortune.

Fortune as believed to have
raised toe largest venture
capital sum for a microcom-
puter start up. Its powerful
computer costs $5,000 in the
U.S. anfi £3,510 in the UK for a
basic machine with a single
floppy disc. It is being sold by
a. number of original equipment
manufacturers Including Its
largest shareholder the French
electronics company Thomson-
GSF.

Although most personal com-
puters, like Apple’s and Com-
modore’s, are based on 6-bit
processors .there- has been a
rash of 16-bit machines

announced including those

from toe Japanese including
Hitachi, Seiko, Panasonic, C
Itoh and Sord.

Earlier this year Olivetti,
with a significant share of the
European small business

systems market, launched its
first personal computer, the
M-20, also 16-bit. costing
£2,900 in the UK including rwo
floppy disc drives and a low
cost ’printer. Olivetti says it
wants to have 10 per cent of
Europe's personal computer
market by the end of 1983.

Britain’s ICL launched Its
own personal computer earlier
this year to complete a range
of new small business systems
which have been launched over

toe previous year. ICL's. per-
sonal computer — with an S-bif
microprocessor— is based on
the Fair “Black Box” and is
made under licence at its
factoid’ at KMsgrove.

The Perq

Earlier this year ICL also
started manufacturing the
much more powerful micro-
computer, the Perq, which was
developed by Three Rivers, a
small U.S. company based in
Pittsburgh. Costing around
£25,000 in toe UK it is a very
powerful computer capable of
extensive communications and
con display detailed graphics.

The Perq is regarded as par-
ticularly suitable for use by
scientists and engineers and
other professional staff
because of its good graphics
and useful design abilities. It
is also to be sold as an office
terminal.

The Leeds based minicom-
puter company Systime which
sells systems based on DEC
minicomputers has produced
independently of toe U.S com-
pany, its own 16-bit micro-
computer which sells at just
under £5.000. Other UK corn-
parries in the field include
Casu and Nascom, part of
Lucas Logic.

Using a standard 8-bit micro-
computer, these work patterns
will involve a lot of switching -
of disks holding different appli-
cation programs— waiting for
each disk to load its contents
into the computer memory —
and worse still, going through
the routines required to get into
and out of each separate pro-
gram.

Printing a document win em-
ploy all the resources- of the
8-bit microcomputer. . Sending
one task at a time. For example,
another computer wiH tie- up
the computer arid the telephone
line hooked up to it

The 16-bi micro, with a multi-
tasking operating system, on toe
other handv can swftdh from one
program to another, without
delay.

It will probably be equipped
with a mini Winchester disk
drive— a memory system with
much higher capacity that can
hold several application pro-
grams on one disk. (Some of
■ toe higher performance? 8-bit
systems such as the Apple EH
can also use mini-Winchesters
but tbeir built-in memory— the
chips that hold toe: program
while £hq computer « running
it— is more limited fhan 16-bit
machines.) .

Another important advantage !
of the 16-bit machine is that its
superior computational capabili-
ties enable it . to provide high
resolution graphics in multiple
Colours. This allows diagrams,
charts and complex graphs to
be accurately and clearly dis-
played. .

Many of toe differences
between 16-bit nriero machines
and toe . older 8-bit models
reflect toe fact that manufac-
turers ‘ hays • learned some
lessons, and corrected some of
tbe less, attractive features of
earlier syateme^united btrilfcen >
memory and poorly: designed
keyboards, for, example. ’

The new 16hst machines have
been designed specifically for
office use, while tbe original
8-bit personaS computer? were
aimed ait a nebulous market
which. Included hobbyists and
home computer users, as well
as the businessman.

What are the drawbacks of
the ldbit m a c h ines?

InatiaHy, at least, the 16-bit
micro computers wffl oast
considerably more than 8-bit
machines. The prices of 8-bit
computers are faffling steadily,
so that' fuHy- equipped systems
can . now be purchased tor
around $3,500. 16-bit machines
run closer to $7,000 tor a well
configured system; Add another
$2,000 td either - price tor a
“ letter qoafity *• -printer.

Another problem vrito toe
26*it machines is toat because
they are so few—toe first ones
appeared in the U.S. last year—
there is very littie ready made
software available for them.
Manufacturers .assure the
customer "that this situation is
temporary, but in toe meantime
the lack 1 of faefeties, sw* as

ing packages,, spread
programs and so on, severely
limit what toe average user cam.
do with Ibs lWrtt system.

- Perhaps even more important,
there are 'vay few people out

there— even among toe dealers

— who have much experience in
twang fteflMrft ntietocomputers.

• 'Ll. 4.1»

computer uorace seeking

Burroughs enters
16-bit battle

BURROUGHS has launched Its
range of snail, business
computer system Although it
is one of toe new generation
of l&htt . micros, Burmins
state-s toat .Ibe B-20 is not a
personal ^ computer, it is a multi-
function ; . business ~ orientated
work statioiu.

Baaed on '■ oode compatible
Intel 8086 .'or 8088 Ifrbit 5MHz
micro processors, toe B-20 may
operate a$;-a stand-alone snail
business . computer, as a distri-
buted data processing terminal
system^ and as a local area net-
working woritetatibn. Multiple
workstations -can thereby share
resources and intercommunicate
at 307K band, via malti-drop
RS 422 tinea; or lft.iK baud ™
RS 232C ritaimrisH ' .

, ' --V

— Tk ~~ '

-x -x

. - --

^ • .-r

*. . . “ v

-----

TTie ICL Personal Compuba:

Qiooang the wrong personal computer cannot
only be i^obleinatic, but veiy costiy

Hie new ICL Bansonal Computer is the right one.
Ks a qualify professional personal computet It can
start with a single Visual Display Unit, naturally But
unlike other systems, it can grow as your needs grow
Starting at around&2^00 with one VDU.

range of persona! computer hardware and software:

Wide range of Application software available,
provknngtimttite^possibaiti^.

Soyoursecrefcary can do ho-wordprocessin^yoa
can do your forecasts, and your accountant can do the
invoicing, all at the same time.

ThafswhatmakesthelCL Personal ComputeniK)re
than just a personal computer Needless to say ifs confr

The ICL Personal Computer provides a ra nge of pact, go od-looking and extremely simple to use.

options enabling you to have a system tailored ■■■■■■■ And KLk business applications experience

tomeetyourchangingneeds. ||A| I and ICL Trader Point service back-up is second

By adding a fixedkiisc,you can have eight I ■ to none,

timestiieavaikblestorageiapacityandsupport What more could you ask foi; apart from

up to 4 VDUs. And ICL can provide an extensive I I a demonstration?

trader point

Tbs ICL Trader Point, ICLHouse, Pufney, London SW15 1SW.
Please send me forte infonoation on Ihe newO-PersoncdCmputei:

Name & Address

■ ■ ■ - • • ■■ '

. Tdephoue:

Type of business:

-• ’ ; •

FT 8/6 ‘

'

. : -Y

:- .'J-'T.

|V i _.

financial Times Tuesday June jMijg

SMALL BUSINESS

UK INSTALLED BASE BV MAJOR VENDOR

IBM

Units

Installed

3,008

% share
15.3

Value

223

%share
2£5 :

:

Burroughs

2,400

125

134

78

16L5

9.6 :

T ?;; S£T"

Systlme

Olivetti

1^00

3^00

17A

56

•-6L9V-

DEC

LUfi

5.7

52

• ' 6.d : . -

f, —

NCR

860

4.4

31

-4*2

Nirdorf-

400

2 JO

31

. -3^

Kienrie

1,520

7.7

.27

3.3 .

Others

5,606

28.3

178

2L8 -

; TOTAL

19,710

100

811

160.. v’:

■ '

WEST GERMANY INSTALLED BASE BY.MIUGfti
VENDOR .

(Figures for year-end 198iy

ii4ll.Miiwiu<M ■

M THIS MUCH COMPUTER.

Itae Umitations of an average micro-conipalErcan
become very critical as you make demands uponiL

Not so with MICROEACi; because this is no average
micro- computer

MICROEACT links ynur office to all the sophisticated
systems, extensive edacity and professional services of CMG’s
central, computer

So your computer resources are always one step ahead
of your business needs. And as your company grows, die
computer grows with it.

The MICROFACT system extends this instant flexibility'
to all the key areas ofbusiness efficiency, word processing,
invoicing, stock control, financial planning, payroll and
accounting And whenever your business demands more,
it’s there.

MICROEACT has two other vital advantages.lt ’s jostone
of CMG’s many information processing services and it comes
complete with all the ongoing professional advice and
technical support of Europe's fal sest tn dependent computer
services supplier

And it requires no coital outlay, because you bite it xna
simple, very cost-efiective rental arrang ement.

If you’relookingforcxmiputers to ht^your business, or
you’re disappomtedwilhycnirpreseidcnje,youshouMfiUinour
FREEPOST coupon.

MICROEACT service is no CMxlinarycong>uter system. Ift
the computer service with unlimited capacity

COMPUT Bt SOLUTIONS

Iwant toknowall the facts about MICRPEACT.

I

I

I

Narad.

Position:

Alveronie’s DECmate 278 commercial passage combines the
functions of a word processor and data processing system
into a product which is little more expensive than many
single-ftmetion, stand-alone devices.

IBM

- Units
installed
6,935

Share

percent

10.7

Value

(5m),

488

Share

percent

22,0

vvaln Cac-

Nixderf

6,750

10.4

361

1&3

r;? SSS--

T-A

23^00

36.0

360

16JI s.

>iS*rZ

Kienzle -

6^15

10.7

7.8

277

146

12^

6.6

"..idaasfc

.: : >28&±r-

Wang

1,453

2JZ

1 12

5.1

•* '^7 7a.; v

Olivetti

5,600

8.6

90 .

4J. .

Philips

L375

2.1

69

ZJ.

J.«Ws S'

Others

7^86

1L5

314

141

Total

64,769

100

2£17

. 100

Jason Crisp shows how two different companies have benefited from small computer systeins"

Equipment
aid

in

proves to be
administration

Company-
Address:

JKINol

Nature ofbusinesse-

Send to: CMG (UK) Ixd^ FREEPOST^ Croydon CR99EB,
telephone 01-680 7027

BERNARD WALSH, founder
of Wheelers, the London based
chain of restaurants which
specialises in seafood, first
heard of restaurateurs in the
UJ5. using computers to run
their business about six. years
ago. *

Although Walsh died last
year he was able to see
Wheelers become one of the
first restaurant businesses to
be computerised in Britain.
Nick Newland, a young
accountant hired six years ago,
was given the task of firming
out what could be done and

No business is

oo small for this

AVAILABLE NOW

nationally from these
Rank Xerox Authorised
Microcomputer Dealers

microcomputer

The Xerox 820

How many times have you wished for
a simple, straightforward, easy-to-use
computer to help you with your
budgeting, planning,
forecasting.

word processing
etc etc?

And how often
have you thought
that if you found
one you coufd'nt
afford it anyway?

Two simple questions,
with one simple
answer: the Xerox 820
Microcomputer-
idea l!y suited to the
small business operation
but with the capability of many
more powerful, -and more expensive,
models, it also comes with something no
other computer can offer- the Xerox name.
Being a small business, you'll knowbetterthan
most the amount of routine, time-consuming
data and informationyou have to gather and
process beforeyou can getdown to making
those derisions that takeyour business
forward.

Rank Xerox knows only too well the
pressures on you. To keep atyour finger-
tips, at all times, a complete picture ofyour
business operations. The information needed to
help you make informed business decisions, to
provide your customers with statements and
invoices, your suppliers with stock control
reports and orders, to enable you to track sales,
expenditure and cash flow, and above all to
plan for the future.

The Xerox 820 freesyour time. It enables
you to keepyour finger on the pulse ofyour

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Rank Xerox understands your
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the Xerox 820 is the practical, cost effective
way of automatingyour daily business activities.
It opens to you for the first time a wide choice
of business applications and a versatile range of
programmes to suityour own needs.

It's a truly versatile machine that will work
wonders fear even the smallest business.

If you would like to find out more
about the Xerox 820 Microcomputer,
contact your nearest Rank Xerox
Authorised Microcomputer Dealer
who would be pleased to help you.

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who could do it The urgent
priority, was to ' computerise
the complex a dminis tration
with 450 staff -serving
thousands of meals a week in
13 restaurants. \ -
The search for.- a system
began in earnest three years
ago and after ^ .considerable
amount of work Newland pro-
duced a document detailing
Wheeler's system requirements
which was. sent to 20 com-
panies ’ including IBM, ICL,
Philips, NCR and Digital
Equipment • .

The responses were mixed.
Some, says Newland, were very
keen to implement the system
he had worked oat Others
wrote back and told him to
forget Ms requirements hut
offered alternative solutions.
Curiously IBM did not bother
to reply at alL

From the replies Newland
chose three companies which he
asked to quote a price to meet
his general specification, which
was not a detailed system
requirement The successful
company then spent three weeks
at Wheelers making a very
detailed and comprehensive
systems specification.

In addition to fairly standard
business requirements such as
the computerising of payroll,
sales . and purchase ledgers
Wheelers had several special
requirements such as . the
tronc.” The tronc is the
collection of 10 per. cent service
charge which is automatically
levied on customers. . The
amounts collected are brought
together at Wheelers head office
dose to Chinatown in Soho,
VAT is deducted and all of the
service charge is allocated to the
staff on a points system in their
pay packets the following week.
With so many variables it took
a clerk several days to work out
The successful company with
the lowest bid originally quoted
£47,000. But after three weeks’
study of Wheelers’ special
requirements, the company said
the system would cost £55.000.

It is not an unusual ploy of
computer companies to bid
below what they will eventually
charge and it greatly irritated
Nick Newland. He was not in-
dined to go back to his board
to ask for an increase in Ms
budget

It is a manner of selling I
dislike and I refused on prin-
ciple even though the company
then reduced the price by
£3,000. The company hopes that
you have gone so far down the
road with it that you feel yon
have to accept”

Coincidentally Wheelers’
auditors had been looking for
a small business system for
themselves and after a detailed
investigation had opted for a
small UK computer company.
Star, wMch had not been on the
original list of 20 companies
Star was presented with the
detailed system requirements
compiled by the previous com-
pany. It made some amend-
ments and quoted just over 10
per cent below the previous
lowest initial quotation.

The system was installed in
October 1980 after Wheelers
had its warren-like offices com-
pletely wired so that video dis-
play terminals could be used,
if needed, anywhere in the
building-

ini dally Wheelers had some-
one from Star for a brief period
on call to help it get accus-
tomed to the new equipment.'
Newland says that since it has
had the computer vlrtuallv noth-
ing has gone wrong with the
hardware apart from an occa-
sional failure of a video display
unit. There have been problems
with the software which have
been cured by Star working
remotely linked to Wheelers’
computer via the telephone line
and an acoustic coupler.

The main problems were on
the bespoke software written
especially for Wheelers rather

than the standard packages. But
.Newland emphasises the prob-
lems are normally, solved , very
quickly.

The system is also being used
for the administration, of cus-
tomer credit accounts, mailing
lists of its’ quarterly magazine
and for word processing.
Wheelers is now looking at tills
for each -restaurant "which will
record ail the transactions
directly on to magnetic tape or
disc. Administration, staff has
been cot from 24 to 19, partly
because of change in methods
and partly because of computer-
isation. •

_ _ •’ _

Solution to

complicated

calculations

Tom Ravens dale’s need for a
small computer system is very
different to that of Wheelers.
Although he is a biology-
lecturer he is also a motor acci-
dent investigation consultant.
Accident investigation is an
esoteric art confined almost
entirely to the . police force. .

Ravensdale is the only
civilian to have been trained in
accident investigation at the
Hendon police college. He has
also studied at Northwestern
University Traffic Institute in
Chicago under Stannard Baker,
the doyen ' of accident
investigators.

The core of reconstructing
accidents is lengthy, detailed
and complex mathematics which
are based largely on Newton’s
laws of physics. With a keen
interest in technical devices
Ravensdale decided to buy a
microcomputer to help him per-
form the laborious and time con-
suming problems of analysing

accidents.

Ravensdale bought a iTa itiSs
TRS-SO, one of the world's tjest
selling microcomputers w&h
competes . . with ' particularly
Apple and Commodore. Largely
self-taught^ Tom ^J&vensda&has
'now written Ms .own computer
programs wMda he’ says "hate
attracted .considerable interest
in' the U.S.V

. Ravdnsdale has & wide zatigB'
of programs . for- reconstructing
a variety of ucddente : . fipm
fairly limited data ^such^.ths
length of the -skid mari^-and
.the. finad r position , ^off- , ifie
vehicles. In a matter of seconds
.the computer wSl calculate; for
example, the speeds of the two
vehicles immediately prior to
the collision. The same calcula-
tions performed manually
would, he says, have t^en a
week. -V

Tom. Ravensdale first -nspd a
computer to calculate accident
reconstructions .after meeting a
director of a . computer bureau
■who had a strong interest to.
motorbikes and let him have
use . of : one of Ms terminals.
Ravensdale’s biggest problem
has bten condensing has pro-
gram to operate on a' macro-
computer. Through a technique
he devised for himself he has
been able to compress very,
lengthy and .complex , programs,

He cm calculate • what
happened in a wide range' of
incidents from a car Mtting a
pedestrian or another car to the
speed and angle of lean of a
motorbike crash . from ibis
gouges in the road. )r

Most scientific accident recon-
structions axe performed hy tba
police for criminal prosecution. -
Ravensdale appears in court
either defending in cxhitinal
proceedings or for civil litiga-
tion cases. • With a small
Japanese hand-held computer he
even makes additional calcula-
tions in the witness box.

V

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Choice of software

CONTINUED FROM PAGE IV
wMch the package will demand thinkin g - that your

is an acceptable change to
existing business practices — the
promised productivity of the
package may be frittered away
in the confusion and frustration
of change unless properly
managed.

• Rule three is to make sure
that ail those that will use the
-package, and its output, are
fully trained, before the
package is run. Aod then do
not abandon the old business
routines the day the package
first .runs, operate the two in
parallel until fully satisfied
that, you are getting what you
want and what you expected.

. Training hid documentation
should be provided as part of
the package by the vendor.

• The fourth important rule is
to evaluate the viability cf the
computer and package suppliers
as your computer and packages
may need extensive main-
tenance during their use. Apply
tiie. normal commercial criteria
to. your evaluation and do not
be blinded by the fact that the
market is growing rapidly into

must survive; many have not
leaving customers without tira
support they badly need,,;.-'-.
• The last rule, the one mos!/
difficult to keep but the dh^
that really pays off in the
future, is to choose a package:
that will noc be a dead end
You may soon want to run the
package you buy today on i'.
more powerful computer tlfttfi,

i mu
.3?* J

Ur

tonerti

ta

to Gup:

KC

town

n

hi

for instance, more storage- -and v

screens than ■ your - eristipS"
model can support. ■ " ’

Equally, you may wahtvmC'
add another package - ' .beside^
your new purchase wMtto'' i gte^ : v'
you a different .type of outonf. '
from the same data. ' • "p;

One final word % .of
about wMch comp u ter-userS are: :
often caught' out:, if -'.your..
supplier . cannot talk your .
language if they have tohide:-
oenina the Jargon of the coin-*.-
puter. industry, -then bow .cast' :
v ^ t , e a Package that/fits':. -

iSeS? profi,ahlyin "* J"®..

„ The writer
Computing

■ — — 1 — — "4

w Editor:
mogoztne. .

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27Siwmggd Pises londoa NW51HN T»l: B14« SntmsrilUPs

* 8 i,

financial' Times Tuesday June S 1382

‘ Ve «a<

0 *harq

n» „
J-'O

;^--. ■ ; ■ ■ . SMALL BUSINES S SYSTEMS Vn -

. Users mih moire than one machine will eventually want to link them together to share resources.

/ ; Geoffir^ Charlish looks at theprospectsfor smaU business systems intercoim^on.

Vast potential lor data-exchange devices

:ter system,

-THEBE: ABE ' perhaps-; three
aspects of eommunicatiops for
'any orgamsation that is' plan-
Tiing to J acquirt,’ change . or
.expand a small business com-
puting system . ' * ■

One of them, the connection
of terminals and peripherals to
the stand-alone computer, is
'straightforward, as is transmis-
sion to a remote site over FIT
data tinea. t •

The second aspect is the way
in which those national UnTrc
■might be expected to change-^
and they will change dramatic-
ally over the next decade or
two — while the third is the
currently “hot” topic of the
-local area network, or LAN.
.The LAN is an intra-company
network arising: in the m ai n
from a company’s acquisition of
- further computers and peri-
pherals together, perhaps, with
other ' information devices,

~ audio or visual, and the heed
-to connect them- all together to
form an. economic, integrated
whole. - . >

The tdlimate, fourth aspect
might, be thought of as the
integration of -the other three
— a brave; new digital world,
as it were,* in which any ter-
minal, anywhere,, .can talk to-
any other. • • - " - : “

' Comimmlcatioia: >■ - within a

simple,, single computing, sys-
tem is nowadays - fairly stan-
dard- The data will be coded
for .transmission usmgthe eight
bit 1 -- international - standard.
Transmission can be .parallel
(all . eight bits at once down,
eight, wires) or serial ■ (over
one wire pair, which is cheaper
for longer distances). It can
be asynchronous' (essentially in-
termittent, for man-machine
communication) or synchronous
for machine talking to
machine. Data rates can be
from' about 100 bits/second to
9,600 bits/second and beyond.

- Most of these matters-- are
taken care of by the machine
suppliers, but the small
machine user should be assured
that the interfaces and cabling
are appropriate.

- Connections to remote equip-
ment are made more compli-
cated b y;- th e fact that the
world's PIT .phone networks
were designed to deal with
;iudio sine waves, . not digital
pulses. Change has had to be
slow while enormous sums in-
vested in the analogue trans-
mission systems and exchanges
are amortised. So units called
modems are needed to turn
digits to tones-and- back, again.

Data can be sent over national
and. international lines or satel-

lite links at speeds from 300 to
16.000 dr more bits/sec. Dedi-
cated, leased lines are more
suitable for heavy traffic while
the dial-up services suit infre-
quent transmission and are more
likely to appeal to small busi-
ness system (SBS) users. Packet
snitched networks are being
established and recently the first
UK moves towards the “total-
digital network” were acceler-
ated with the British Telecom
announcement of Kilostream.

Multiplexing

Marconi is working closely
with BT on this part of a hier-
archical system which will
employ a 64 kilobits/sec link
from the customer’s premises
over his existing pair wire con-,
nection to the local System X
■digital exchange. Here, data
streams at 64 Kb/s will be multi-
plexed (merged together) to
give higher rate data flows over
existing pulse code modulation
(PCM) “ Junction ** links to
other exchanges (BT'-has instal-
led 11,000 such systems over 10
years to enlarge phone call
capacity).

, Further nraltiptering to the
100 megablte/sec region will
give digital trunk connections
between main uk business

centres by die end of next year,
using copper, fibre optic and
microwave links.

.Thus, the framework is grow-
ing for a direct terminal-to-
tenninal national all-digital
system which anyone, including
the - business microcomputer
owner, will be able to use as
easily as the present telephone
system.

Within companies the LAN
Wac assumed inevitable signific-
ance following the'blossoming of
the low cost microcomputer. As
small companies grow and
acquire further machines it
makes much economic sense to
Share the relatively expensive
disc stores arid printers and to
freely exchange data.

Similarly, the divisions or
departments, of larger companies
can operate' their own, tailored
computing schemes without
dependence on some big central

aching and its communications
links — but with the prospect
Of po rnTY^iinteaHrig with It if
necessary.

The crucial point about such
a system Is that. devices can be
added or removed without
affecting those already con-
nected elsewhere on the cable
and without any kind of rewir-
ing (up to the maximum capa-
city of the cable and system).

The cable is simply run around
the building and the devices
connected . in with “T”
junctions.

Such a system, may not, how-
ever, have the capacity for
ultimate additions of other
services such as video and audio
— and this is where there is a
growing contention between the
proponents of ** baseband " and
“broadband” system* the let-
ter can carry much more infor-
mation at any moment than the
former. How do they differ?

For baseband read “single
channe l pure digital,” for broad-
band, “ miil t w’hannel, radio

frequency carriers eacb^rnodu-
lated with digital data” The use
of radio frequencies allows
longer distance higher capacity
transmission — of digital data
. and analogue signals such as
speech and TV.

The baseband technique
usually uses packet transmission
in which, in essence, each device
can send a message exactly
when it needs to any other
device. The devices share the
cable in time slots instead of
each having a separate wire.

When a device wants to trans-
mit, it waits for an empty time
slot and then emits into the-,
cable the destination address, its
own address and the data , lor

transmission. The receive - cir-
cuits of each connected device
examine each passing message,
accepting only those addressed
to it.

This, approximately, is the
basis of Xerox’s Ethernet, which
lias been embraced by DEC and
Intel and is licensed to other
companies. Such techniq ues are
also used in the Hasler SILK
system and the Cambridge
University Ring, which is mar-
keted by Logica (Polynet),
Linotype Paul, Orbls. Zionic*
and others^

In addition, many' of the
microcomputer makers are offer-
ing, or will soon offer, low capa-
city LANs, usually for their own
machines. Others, such as Texas
Instruments and Racal, in recent
weeks, have offered further
“ open ” systems where, through
interfaces, various makes of
device can be connected.

Rush is on

As might be expected, there
is a growing need for standards,
apart from the fact that there
are a variety of baseband capa-
cities offered from under one to
over 50 megabits/sec. All this
is being examined by the IEEE
.in the U.S. and other formal
bodies but the belief is growing
in the Industry that it can only

:pl#i

: f ■ pf

•fo

An operator prepares a message on a visual display unit for
'transmission via a Format Communications processor -based
message switching system at Talbot Motor Company’s London
headquarters. The system 1 links production centres in the
UK and on the Continent; as well as Talbot’s regional offices
and dealer network. •

be specific commercial success
that will spell out a standard.

Yet others feel there is no
need for standards since most
small users will be locked into
a particular machine maker and
interfaces can always be con-
trived where necessary, into
other LANs or national net-
works.

In any event, the rush is on
and there are believed to be
over 100 companies selling
LANs of one kind or another.

In ihe U.S., many of them
make offerings based on a long-
background in cable TV and are
natural exponents of broad-
band. They have a champion in
Michael Killen, president of
Strategic Inc., who recently
issued a report on LANs which
suggested that Ethernet, the
front runner baseband system,
would soon fail.

He believes that buyers are
already opting for broadband

to cover future capacity re-
quirements and prevent expen-
sive re-wiring later on. In
London recently. Killen pro-
duced figures which seemed to
show that, beyond about a dozen,
outlets, broadband is cheaper
to instal.

Among the proponents of
broadband in the UK are Inter-
active Systems/3M (tipped by
Killen as leader), Sytek (from
Network Technology in the UK)
and Wang.

Complicating the issue are
telecoms-based companies like
ITT and other giants like
Philips, who offer local nets
based nn the PABX. It is pos-
sible too to base networks on.
viewdata protocols (GEC, Re-
diffusion, etc.) — interesting in
that standards can be applied
over established networks.

So the market is wide open,
and it is likely to be worth
$3-?5bn within a decade.

’■M

■ ■ ■ -»**!** ^
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'■ 4 . " ■ ■ ■■ ■ j. > ■ ^-T. -

financial Times Tuesday June - 8 1$5E

SMALL BUSINESS SYSTEMS YIH

Memory facilities are important for small business systems
Geoffrey Charlish looks at the advances being made in various memory devices

Rapid advances in storage technc

STORAGE of data in a small
business system falls into two
broad categories. One. the main
memory, is entirely integrated
within the electronics of the
computer Itself. It is imple-
mented In solid state chip form
on printed circuit boards and
apart from the initial purchase
and, usually, the prospect of
expansion, the user is not
greatly aware of' it.

The other is bulk storage, in
which the users business data
files are kept together with any
systems software not in use.
Here, access time does not have
to be in the billionths of a
second region of the main store
(necessary to manipulate data
on line) and vastly larger
amount of data are accessed
rather more slowly.

Main memory is essentially
“random access” (RAM) allow-
ing data to be written, read and
erased for manipulation by
logic circuits in an applications
program.

The more memory, the more
powerful land more expensive)
the machine. Sizes vary from
about 50,000 bytes <50 kB) to
about 500 kB. “Byte” is com;
puter jargon for “character,”
so that the larger memories can
contain several hundred pages
of text in say. a word proces-
sing system.

Main memory often also in-
cludes read-only memory

Rotating Memory Segments

from disc could be made very a recently announced Thorn-
small — implying an extremely EMI unit, and a drive from Per-

OEM cost per uptacfletM

100,000 r

. I RemoraUpdtefc

true-running platter

tec called Starstreamer holds 92

much smaller magnetic areas megabytes at 3200 characters
could be recorded and sensed per Inch.

i NetcurendjrMrg aMppad

High capacity
fbraddisk

and more data stored.

Just around the corner is the

High capacity //
cflskpack s' S

Cartridge^^fc

-77

In Winchester technology the optical disc, in which a laser
head is positioned only 20 mil- makes minute impressions on a
lionths of an inch or so above special surface,
the surface, making any specks Sony Philips, JVC and RCA
of dust in tiie gap fataL So the have all made announcements
disc is not rmoveabie and the and -shown prototypes in this
whole mechanism is housed in area, with the main ' emphasis
a sealed enclosure. ' on. the consumer market audio

Several of the computer com-

on. the consumer market, audio
or visual. They use digital or

//

i /

optaddtok 1 panies and many M indepen- recording -and in

low capacity fixed disk

dents ” offer Winchesters, a t& ®°5 y J * end themselves to corn-
typical offering, from Shugart pu 5”L data .? econil 2 < g- r ' .

is an 8 in version which offers ^Approaching the market
34 megabytes on three platters. computer industry end

. Z-J? . . . are Shugart and Drexler in the

A farther development has UJ&, both of which have made

Minifloppy

Laser-card

Drexler, using the -

domestic record player can be
placed to play any music band,
so the read/write head of a
disc store can locate any of
100 or so concentric tracks
magnetically recorded on the
flat metal oxide surface. There
can be several thousand bytes
on each track.

been the miniature Winchester disc announcements in the last
or " minm-wcvtu.” An example few weds
of a recent introduction, from

i 1 Rotating Memory Systems, is a Laser-card

\oo 1000 10,000 drive that can have from one ' 7^

copuByCMByin} to four discs of about 5 iudia- Drexler, Mf P n g the- “micro-

— : meter, yielding up to 18 mega- hole” system already employed

bytes. • . in -its laser-card, has developed

on manufacture. IBM in particular offers mag- a disc that can hold 3L25 giga-

“ Floppy disc is a rare, plain ne ti c cards, a column and row bytes (billions of bytes) on one
English description not often magnetic recording system used side. This is the equivalent
found in computing: the device in their small bus mess systems, of 50 14-in two-sided magnetic
is a 7 in diameter flexible disc However, the ultimate In disc platters. Drexler plans a

on manufacture.

0 or so concentric tracks is a 7 in diameter flexible disc However, the ultimate In disc platters. Drexler plans a
agnetically recorded on the with oxide coating, housed in magnetic recording was to have $7.8m plant to make the discs
rt metal oxide surface. There an 8 in square envelope f ro m been the bubble memory, by the end of this year.

n be several thousand bytes which it is never removed. The launched in 1978 and consisting Shugart in Sunnyvale^ Calif or-

1 each track. disc rotates made the envriope, gj a large number of extremely nia, - is developing a semioon-

In larger computer systems, which has a slot cut in it for small magnetisable areas on- a ductor laser-based system that
j . , .u a thp hp.iri to search ramaliv. u.v. n mm.. :

an 8 in square envelope from

bubble memory,

which it is never removed. The launched in 1978 and consisting

fixed-head discs are often used.
These have an array of read/

chip.” Access is row-sequential raises blisters rather than hurn-

These remarkable mechanics rather than random, but the ing holes, and speaks of 5 giga-

(ROM), in smaller amounts, heads arranged along a were regarded with suspicion at worst access time is about one bytes per surface. It hopes to'

The contents of ROM cannot as
a rule be changed and it is used
to hold "housekeeping" soft-
ware for quick and easy access.

The principal trend of main
memory is the constant im-
provement of cost/byte due to
semiconductor technical ad-
vances in which more and more
storage cells are crammed into
less and less area. Power con-
sumption tends to go down in
parallel, so that the computers
become less expensive to run.
This very large scale integra-
tion (VLSI) will soon produce
12Sk RAMs following the recent
advance to 64k.

Of rather more practical
interest to the computer-user
are the bulk storage options.
Over two decades or so very
large sums have been spent on
developing disc stores, small
tape cassette and cartridge
devices, magnetic cards and
bubble memories. On the hori-
zon are some highly sophisti-
cated devices employing the
laser.

Just as the piclwup arm of a

radius of the disc with one head first, but have proved to be second. With no moving parts have samples ready by the end

foff each track.

quite robust, with drive lives of or worries about contamination, of next year.

five years. Access time of the idea seemed attractive for The exact ' futedrt
Moving-head floppies is about half a second robust bulk storage. But costs devices In small &

® and some 0.25 megabytes (mil- have removed all but Intel and terns has to remai

But for small business lions of bytes) can be stored on Motorola in the U.S. from the for the time being,

systems, attention has focused one side. scene, although several Japanese "read-only” devk

on the moving head type. Mind-floppies, with discs only companies are said to be wait- recorded, the data

Recording heads are expensive 5 in across have also appeared big In the wings. ‘ altered or erased. .

and the use of only one, on a offering about half the capacity. The other major magnetic But this may i
fast moving solenoid -actuated They have proved to be system, tape, is applied in small Such a colossal amoi

But for small business
systems, attention has focused
on the moving head type.

radial arm, keeps the cost down.
Also, because there are no
spaced heads, more data can be

extremely suitable for the
microcomputer and have
allowed systems to be sold with

the idea seemed attractive for The exact ' future for such
robust bulk storage. But costs devices In m»n business sys-
bave removed all bat Intel and terns has to remain indistinct
Motorola in the U.S. from the for the time being. They , are
scene, although several Japanese "read-only” ■ devices: once
companies are said to be wait- recorded, the data cannot be
ing in the wings. J altered or erased. .

The other major magnetic But this may not matter,
system, tape, is applied in jcmaii Such a colossal amount of capa-
systems in the form of the tit? exists on the disc that it

the systems in the form of the oty exists on the disc that it
have Philips standard and micro- yrill probably be possible to
with cassette drives and cartridges ignore the previous data- and

put on the disc. But access is- a performance that would have from 3M and others. They are simply record and use the new.
about five times longer than for needed a minicomputer a few less expensive than disc, hut

the fixed-head type. Moving- years ago.
head types can have fixed discs, Accord!)

removeable discs, or a combina- of Shugart a leading disc com-
tion of the two. pany, current .media develop-

tion of the two.

The small desk-top machine
and word processor encouraged

years ago. access is rather slow at 10

According to George Sollman seconds or so.
of Shugart a leading disc com- a recent innovation is the
pany, current .media develop- -"streamer” tape drive, used as
ment will lead to a 5 in drive a back-up for Winchesters. Be-

FORTHCOMING SURVEYS

. DURING THE present In-
formation Technology
Tear, a number of surveys -
Id the Financial Times axe
highlighting deveJojsments -
in computers and office

equipment.

Among these ’surveys Is ■
Computing Services and'
Software, due to be pub-
lished in. August
Computing sendees, .
data . processing, software,

consultancy, recruitment
and training continue to -
grow at more titan 20 per 1
cent a’, year, worldwide,
despite the recession.

The . survey will reflect
tite changes in the Industry
and .identify the principal
trends in its development
Other . arfjdeg • will
.examine .'the pressures on
computer bureaux,
traditionally the' backbone
: of the computing services

■ >v •

INFORMATION
TECHNOLOGY

industry. Writers will also
report on the moves .within
the services industry to-
wards self-regulation and.

Its attitude to competition

from outside.

Other - articles wSl
examine the trend towards
packaged software; the de-
mand for computer
analysts and. pro-
grammers; and the
options available

to computer users. •

# Other FT surve ys BM g ~
year oh the. office ‘environ* y.

1 ment will Include' Office . 7
Planning and Furaititing.-v ■■

- (in October), and Vldeoter T ;

■ Systems (in December). :-; -

• The impact of com*',
puter technology bn in- :

dostry will be exami n ed hi
a survey next month on '7
Manufacturing Automa* 7
tion; as Industry Is oai. the 1 ; K .:
verge bf a massive increase y
. in. . .productivity. . through^ .V-

■ the ' combination . of eonh'-pv-.,
pater-based technologies^. : .

■ and robotics.' ■ .. H'-vr-

Articles in the survey^C'
wfll look at. deveiopmeitf
in.- monerically-coijtrolledr
and computer iumieriwdly^,;
controlled jsystemsf cran*.''.'!
pnter-alded design; flerfbte j; , ;;
ma nufa c turi n g systems and
case Judies in autonutied
factories. - -r*,-

.-Sr "

M #.-<•>-

Vi-

-vv . ■ >'

-i' , . .

«r~s -r r :

-V Z’* j •• •>' ' ,J

' ' . ‘ ft’ ’ *' '• * ' v.-. • '

. . • * ■« - . 1

. . ■ . : \iGtyn

Users of small business systems need “a complete package, 1 * says Mr John Elsden, managing- '
director of ABS Computers, «een above at his Portslade, Sussex, plant

PROFILE: ALLIED BUSINESS SYSTEMS

within a year or two that will

engineers to look for disc store hold five megabytes,
designs that would be a better Attracting the mo;

cause a duplicate disc cannot be
put Into a Winchester (it is not

designs that would be a better Attracting the most attention removeable) in the event of data
price match for those mere as- in recent times however, has loss, the information must be
ingly inexpensive computers, been, the Winchester disc drive held in some other form. The
The answer came from IBM in (Winchester was an IBM devel- streamer does this cheaply, con-
the early 1970s and was the so- ■ opment code name which has sis ting of a continuously run-
called “ floppy disc." Many other stuck). The IBM researchers ning, non-capstan drive. Some
companies have since embarked saw that if the spacing of head 61 megabytes can be held on

ABS shows signs of fulfilling
its early promise

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ALLIED - Business Systems
(ABS Computers as ft likes to
be known these days) is one of
a dutch of UK mimeomputer
companies, set up at die begin-
ning of the past decade.

They all had a rough ride
through the market place in
their early days but those that
survived are beginning to get
their reward. Systime, the
Leedsbased Digital Equipment
(DEC) oem, is the best example.
Now ABS is showing signs of
fulfilling its early promise.

ABS was set up by Mr John
Peer s, o ne of the computer
industry's most colourful
characters. Reckoned by many
to be an entrepreneurial genius
Ahead of Ms time, Mr Peers
spun off a number of innovative
companies none of which
brought the instant success that
DEC, for example, found.

Nevertheless, John Peers
understood dearly the import-
ance of installing small business
systems in which hardware and
software were combined In one
turnkey package. ABS was set
up to promote that philosophy.

There were early decisions
from which the company lias
still not fully recovered. Mr
Peers dedded to build his
machines around a computer
architecture designed by a U.S.
company, General Research
Industries (GRI), now no
longer in existence.

There was nothing much
wrong with the architecture.
After all, .ABS’s current high
performance MX. -series still use
the GRI concept; but It has none
of the instant market appeal of
a DEC or Data General offering.

As Mr John £2sden, ABS
managing director, pttts’ it: "If
I had my time over again, I
would have gone with DEC or
Data General rather than GRI
— it would have made .the early,
days so much easier.”

Now ABS is a very small fish
in a very large pool. According
to the consultancy IPC Europa,
IBM held 28 per cent by value
of the small business systems
market in the UK by value in
1981 with Burroughs in second
place with 10 per cent System e.
Olivetti, DEC. NCR, Nhcdorf
and Kienzle all have a smaller
share. ABS is somewhere among
the 100 or so other companies
which provide systems to the
UK market.

What makes ABS of special
interest is' the fact that it is
owned and supported by the
mighty Trafalgar House group
of companies and is, fn fact
Trafalgar’s only direct interest
in computer marketing.

ABS turnover Is somewhere
under 1 per cent of that of Ms
parent and Its contribution to
Trafalgar House’s profitability
is proportionately smaBL But
Trafalgar House seems prepared
to bade its tiny subsidiary as
it struggles for success in what
is, for it, strange and un-
familiar territory.

Mr David Taylor, Trafalgar
House finance director, Is chair-
man of ABS and has been asso-
ciated with the company -smee

it became part of the group.

He says: "It was small apd
an odd fit In the. @oup; it
needed time to grow and time
to establish itself in the group.”

Trafalgar House became in-
volved in tiie first place because
it had provided John Peers with
desperately needed working
capital in the early days. la
1974, Trafalgar acquired the
entire company and recoostruc:
tion began.

When John Elsden was
appointed managing director in.
1979, the ground had already
been prepared for substantial
growth.

Mr Elsden is himself some-
thing of a phenomenon in the
industry. Only 30 years oid now,
he was the youngest managing
director in the Trafalgar Group
when he took up his post

His rise in the company was
meteoric. Joining as a pro-
grammer at the age of 20, he
was software research and
development manager within
three years and technical
manager within six.

Ability

Outgoing, instantly likeable
Mr Elsden is a' powerful
combination of businessman and
nuts-and-bolts technologist In
minicomputer companies, that is
often essential. The microcom-
puter companies are already
following the example of the
first wave of minicomputer
manufacturers, set up and run
by technologists with little idea
of financial needs.

That led to a heavy sprinkling
of closures and reorganisations
In the middle to late 1970s.

Mr Elsden has no such prob-
lems. His technical ability is of
a standard to enable him to
have created ABS’s own com-
puter language SIMPLE. His
business ability leads to
creativity of a different order.

“Stock is tiie major problem
for minicomputer manufac-
turers. I keep a rigid grip on
everything that Is bought and
everything that ia sold. When
I took over I bought 10,000 8K

static RAMs (an Important farm
of memory chip in computer
. systems). Within 12 months,
market shortages had forced the
price up to 16 times tiie original
price." -

What Mr Elsdon 1 believes —
and his view has the -blessing
of. Trafalgar House ~via David
Taylor— is that users of small
business systems need a com-
plete package. They need good;
reliable hardware and effective
software but they also need 1
their hands held while the
system is being run in.

Mr Taylor says: “We do not
set out to be a flashy, gimmicky
outfit We want a reputation for
- well organised and professional
service and we want every one
of our sales to be a reference
point”

The company is already
beginning to draw in some pre-
stigious orders. Late last year it
was announced that the Post
Office was setting up a new
courier-type service based on
ABS MX computers which pro-
vide the communications links
between customers, dispatcher
and despatch riders.

And within the past few
weeks- it has become clear that-
ABS is one of the few companies
which the Department of.
Industry has chosen to build
prototype automated office
systems. Only 12 companies —
with Xerox, Systime and IBM
among them — have put forward
office schemes of sufficient 1
quality to be accepted by the
DoL

These ‘ two. projects have
given ABS an immense boost in'
confidence. Mr Elsden and Mr
Taylor- feel their original
strategy for improving the
company’s performance has
been justified.

“ When I took over,” Mr
Elsden said “we had 138 staff
of whom only seven were sales-
people. The company was
dominated by technologists. We •
have roughly the same number
of staff today but there are 40
people seHin&”

ABS is strong In a number of
vertical markets — a, sound

approach for. a small. computer
manufacturer, it i si ,a ;unajor
supplier, of y systems . -for:*
magistrates’ courts, for example;" .
PAMS, its police and*; magi-
strates' courts Systran, : costs
ahout £100,000 mid is used by :
12 -separate authorities.

... The; cozopany is hoping for’
great things from its Works
Information and Management
System, WUHS, designed to pro-
vide maintenance and work
departments with a shop floor !
level system. V • .1

Profitability

It is looking for a niche in -
production control with MantL-
mark, ’a suite of programs
intended for stock and produce
tion controL' - Si*:

ABS owns the manufacturing-:
rights for its QRI-derived “com-*
.puters (a move which :, Mr : !
Elsden believes to be among i
the most important he has-
made); the operating systems;',
1 for its computers are.' nbwr i
-sound and mature; And? 1
although its . figures'- -arei :
swallowed up somewhere in'
the £lbn or -so that Trafalgar-
House turns over each year,
David Taylor’s statement; that- ■
ABS- revenues are growings!
steadily and that there is 2; ,
significant improvement ini' its
profitability, is not just proptie-l.
toriaL-pride, -V ^-v

“We are looking for'oonfir-
d encoded investment,” be- said. - ;
“That means getting the con-1
fidence of the group so that-lfc.:
will allocate the appropriate^
amounts of investment .capitals .
There was no way we
simply have stood aside -and)' *
done nothing about ABS. ’aoidi
■we could see the possibilities.'''''
You simply cannot dabblevia*-
this market You are rather far.
or you^are ouL" : : -

ABS is still in a market where'
a whole raft- of companies! have'.-.'
had to get put That is one- of-,
its strengths. The continuing .,
confidence :of- Trafalgar House? '
is the^ other..

Alan Cane;

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l9§2

Emanri# 33mes Tuesday June 8 1982

.*■***

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\!an

THE VERSAILLES SUMMIT

By Reginald Dale in Palis

“ PRUDENCE n AND “process.**
These .ads' the two latest catch
words to make their, entry -into
the murky. vocabulary of inter-
national negotiations following
the ■weekend’s Versailles
. summit.

' In their final conunumqu^,
the seven leaders of the West’s
largest / industrial nations
officially pledged urgently to
pursue “prudent” mooetaiy
policies, and a “prudent And
diversified** economic approach
: to the Eastern Woe, and said
they would take r uxto account
the need for “commercial
prudence” to limiting export
credits to the Soviet Union and
. its allies;' ' _ v / .

. if toeyhad tiled .to., agree -on
“prudence." ' 'actually
means ', id toe practical terms
of exchange rates or toe futare
> vektrae of credits ■■to the East,
they would be condemned to
banquets -in theHaH.of Mirrors
. tor toe foreseeable future.

-^ Conimertsial . ~ . prudence ”
turned ont to be one of the
' stars of the summit. It was one
of ' tiie. most important
ingredients in toe concoction
. of an inevitably rather vague

■ agreement ' on export credits,
which emerged as toe make-or-
bresto issue -as the VersaHles

j talks threatened to reach an
argumentative showdown- Dis-
agreement bn toe issue between
' FreSid eht RpnaJd Reagan' and
President Francois Mitterrand
of France turned the dosing
hours of toe summit into what
. the- Americans described as a
“diff hanger” .

, Eo- accepting" toe key phrase •
" “ihdiRHng .blso’ toe - need for
commercial prudence . in limit-
ing -export credits,**- M Mitten
rand went ratoer fuxtoe? than
he - had originally intended.

; France had . opposed any
reference no limits — there
r subsequently developed a rather

■ fruitless argument . about
,* whether the word meant toe
: same in English as in French
; (toe majority view was that it
! did) — and had wanted to keep
: its hand free to grant goyern-
; mart-subsidised export credits

to the East

It was typical of the Versailles
talks that the final outcome on
i credits allowed everyone to
: claim that they had -had things
- their own way. M Mitterrand
immediately declared that it
was up to each government to
decade what was commercially
prudent, .and berth French and
' German officials said that there
1 was . nothing in toe ag r e e m ent

to .stop ! credit-? . rising . as
-European}' goveuratoents ..toought
.fit

: The AmerlcanSvfor- their part,
claimed* a major victory. For
toe first time, they said, all the
leading. Western countries had
agreed that economic, commer-
cial . and • financial pressure
should be applied to the Soviet
Union, . alongside political and
dipkrmatie pressure.

A hard-pressed Mr Donald
Regan, the UR. Treasury Secret
taiy, had a tiresome time
answering questions on whether
“ limiting " credits could, also
involve allowing them to
increase. He did not want to
admit that it might, but bad.
trouble with toe deliberate
ambiguity that is usually built
into such phraseology to make
it acceptable to everyone at toe
negotiating- table.

U.S. officials, while admitting
. that the wording. was not quote'
as tough as it might have been,
claimed, to be satisfied. with toe
agreement that each country's
performance Should be. moni-
tored every six months in the
OECD, and with, the implication
that- governments should
increasingly move towards com-
mercial rates. One of Washing-
ton's preoccupations has been
that as' private banks have run.
down their lending to the East
bloc, governments have stepped
in with subsidised credits on
loans that the banks no longer
regard as commercially
justifiable. '

- To get an agreement he felt
he could live with, Mr Reagan
had to paH' out all the stops.
Without saying so in so many
words; he implicitly threatened
to torpedo ■ any consensus on a
. new move ahead in the North-
South dialogue between indus-
trial and developing countries
if he did- not- get satisfaction
on. the East-West issue.

However, a fairly dear pack-
age of mutual concessions —
mainly between France and the
U.S.— emerged at Versailles.
Frahce, under pressure as the
host country to : achieve a
summit “ success,” budged on
export credits. The U.S. made
what the Europeans regarded
as significant moves on ex-
change rate intervention .to
stabilise the dollar and on the
North-South dialogue.

This is where -the magic word
“process? takes its place along-
side “prudence.? 3y agreeing
to increase' 'monetary co-
ieration, ' including a
S.tingpired .. study - .of the

» i-X&Si « '■

The leaders of France and the TJ.S.-^— mutual concessions at Versailles

effectiveness of intervention,
Washington, in the European
view,, has got itself drawn into
a “process'* that will, make it
more difficult for it to resist
pressure to intervene in the
exchange market if toe dollar
climbs too high.

. A similar “process” again
lit European eyes, could give
the EurctMsans a greater say in
the dollar’s exchange rate, and
U.S. policy in general, follow-
ing toe -summit's: agreement to
co-operate more closely .on the
convergence -of . . , economic
policies. France, Germany and
Italy made it clear . that they
regarded the U.S. as having
virtually become an honorary
member of toe European
Monetary System.

' Needless to say, Mr Regan
-disagrees. The U.S. did not pot
its name to toat particular, part
of the summit’s “statement” of
international monetary under-
takings, and showed little
imd motion to change its policy
of noa-4nterventioo except when
market conditions become “dis-
orderly”— in accordance with
IMF rules. The Reagan Adminis-
tration has only intervened
once in the exchange markets —
Following Jaa March's assassina-
tion attempt on the President —
and Mr, Regan made it dear

that even if toe Versailles

agreement had been in force

over toe past 18 months it

would not have done so more
often.

Far from leading to greater
intervention, toe U.S. believes
that the study agreed at

Versailles will prove its point
that intervention simply cannot
work once a medium- or long-
term trend in a currency has
taken hold. Mr Reugan said that
the U.S. would not intervene
against either- an upward or
downward trend in the dollar —
except of course, “in disorderly
conditions.” One of toe. hopes
of the Europeans is that the
study can be used to reach a
clearer definition of what *' dis-
orderly” actually means-nne,
of course, that would oblige the
U.S. to intervene more often.

The Americans, on the other
hand, still believe that toe way
to fulfil the Versailles commit-
ment to greater exchange rate
stability is through the parallel
commitment to economic con-
vergence. The idea here is to
extend existing annual
bilateral surveillance of indus-
trial countries? economies by
putting it oh a multi-lateral
footing. Each country would
have a greater opportunity to
comment on • toe likely impact

of another’s medium-term
economic policies- — although
any ^recommendations * would
not be binding.

As in tbe case of credits and
intervention, it is far from dear
that this is actually going, to
make much impact on the real
world. The European Com-
munity ‘has for years been try-
ing to promote the convergence
of member nations’ economic
policies, under tighter institu-
tional control than that
envisaged for toe Versailles
summit with less than devastat-
ing success.

The motives are laudable
enough. Everyone would like to
see lower inflation, higher
- growth and more jobs/as called
for at Versailles. Rut Mr
Reagan’s view of the best way
of setting bbout it is never going
to be the same as that of M
Mitterrand.

Two major causes of trans-
atlantic strife were notably
-absent from the headlines at
Versailles— which in any oase
tended to be dominated by the
Falklands and the Middle East.
They were toe once predicted
major European assault on high
U.S. interest rates and Washing-
ton's objections to the natural
gas pipeline from Siberia, which
it sees as making Western

Europe dangerously dependent
<m the Soviet Union as an
energy supplier.

Herr Helm at Schmidt, toe
West German Chancellor, did
indeed raise the interest rates
issue and there was a mad
reference in the communique to
rates in general being “unac-
ceptably high. But Herr
Schmidt said that be was not
necessarily pointing the finger
at the U.S.. and M Mitterrand
did not return to the charge in
the way that he did at the l.ast
world economic summit in
Ottawa last July.

At that meeting he warned
Mir Reagan that Europe would
have so me thing pretty tough to
say about U.S. interest rates if
'they were not well down by the
end of 19S1.

UR. officials said that no
deals bad been . made on. the
pipeline, and that Mr Reagan
has still to make up his. mind
about whether to try to prevent
UR. subsidiaries and licensees
in Europe participating in its
construction. He will do so
after he gets back to Washing-
ton from Europe at the end of
this week.

The Americans were pleased
with the communique’s renewed
commitment to free trade . and
said that they bad been im-
pressed by the dedication of
ail present to making a success
.of the GATT ministerial meet-
ing to be held in Geneva in
November.

For their part, toe Europeans
expressed satisfaction at what
they regarded as a major U.S.
concession on the North-South
dialogue, in which Washington
accepted that the latest position
of the developing countries —
calling for the opening of a
broad round of “global nego-
tiations ” in toe United Nations
— could be a basis for further
consultations. In return, the
Americans secured a public
commitment that the indepen-
dence of existing international
institutions would be respected
— and a private one that the
Europeans and Canadians would
not gang up with the developing
countries against Washington,

The seven nations have made
commitments toat sound praise-
worthy, but in language that
still conceals major differences.
Most participants regarded it as
just another step along an
already well-worn road. Pru-
dence may be a virtue but after
Versailles toe process of putting
- it into practice still remains to
come.

Lombard

The obstacles to
corporate

By Max Wilkinson

THE TREASURY has been
giving a lot of earnest thought
recently to the question of how
to patch up a relationship
between those two pillars of
capitalist society, toe company
treasurer and toe ordinary
saver. Efforts to bring them
together again in a revived cor-
porate bond market have gained
momentum for two reasons:
first, there is a theory among
officials toat when interest rates
fall to around 12 per cent com-
panies might once again be pre-
pared to issue fixed interest
stock to the public; secondly,
this is seen as one of the few
painless ways in which excess
monetary growth now would
be mopped up.

However, there is' a funda-
mental dilemma about how toe
investors' return on a com-
mercial bond should be treated
by the taxman. This difficulty
arises directly out of the last
Budget which for the first time
offered ordinary savers toe
chance of an inflation-proofed
investment in indexed gilts.
This offers the investor com-
plete protection, since govern-
ment stocks .are in any case
exempt from capital gains tax.
Private sector investments were
in theory given toe same
privilege by toe decision to
exempt inflationary gains from
capital tax. This has increased
toe appeal of equity invest-
ment, but is not as even handed
as it appeared, since it leaves
toe indexed gilt with a clear
advantage over private sector
bonds, as opposed to equities.

The reason is that high infla-
tion rates have created a deep
and muddy confusion between
toe once distinct concepts of
capital and interest A large
part of the payments normally
called “interest” are in a real
sense repayments of capital.
Out of a 14 per cent interest
coupon perhaps 10 per cent is
being paid as compensation to
toe investor for toe fact that
his capital is being eroded by
inflation. This erosion repre-
sents, in effect a transfer to
the borrower, because inflation
reduces his debt at the same .
time as reducing toe savers’
real asset This effect is counter
balanced by inflated interest
rates.

Bat under the present rules
the adjustment to capital values
concealed in toe interest rate
suffers tfie full penalty of
income tax and investment

Income surcharges.

One answer to this long-
standing injustice would be to
design a corporate bond which
would compete with toe indexed
gilt, by taking full advantage
of toe new inflation-proofing of
capital gains tax. A low coupon
bond with an interest rate of,
say three per cent, might be
offered at half its par value.
Most of the investor's return
would come from tbe 100 per
cent “capital gain” when the
bond was redeemed. This gain
would not be taxed except, to
the extent that it exceeded infla-
tion for the period.

Unfortunately, toe Intend
Revenue does not appear to see
it this way. It says that under
its special powers it could —
and probably would — ■treat the
gain as income and tax it
accordingly. Since no bond of
this sort has been issued in the
UK there ds still uncertainty
about to is position. However,
the Inland Revenue is extremely
worried about toe possibility' of
a bonanza of tax avoidance if
people were- able to switch in-
come, and perhaps even
salaries, ■ into capital gains,
through cleverly designed bonds.

But even if toe gain were
allowed to be treated by toe in-
vestor as capital, as it should
be on any conventional view,
there is a further catch. The
authorities insist on toe prin-
ciple of " symmetry " which says
that if a payment is capital in
toe hands of the investor it
must be treated as a capital
transfer also by the company.
Consequently companies could
not offset toe payment against
corporation tax as is posable
with an interest payment. No
such bonds would be issued.

Thus, for powerful reasons,
toe Inland Revenue seems likely
to block any private sector
scheme which would allow toe
ordinary saver to protect his
capital from being squeezed be-
tween toe pincers of inflation
and income tax. lit is plainly
unsatisfactory that toe tax posi-
tion should remain uncertain.

If inflation were really
stabilised at a low level, then
toe corporate bond market could
revive spontaneously. Otherwise
there probably are adjustments
to toe tax system which could
give toe market a worthwhile
help, even if they do not solve
fundamentally toe problem of
Inflation-proofing in the private
sector.

Letters to the Editor

The tyranny of the common agricultural policy

From Mr W. Jones

Sir, — John Cherrington
(May . 21) ' referred to the
“tyranny of distance which
puts New Zealand on toe rack,”
This, is indeed an interesting
point of view, particularly so
at a. time . when toe. UK has
been able to mount naval and
military operations 8,000 miles
away from base. We appear to
have overcome successfully the
tyranny of distance in toe case
of toe Falklands. I hope that
we may be no less suc cessful
in overcoming the tyranny of
distance in the case of New
Zealand foodstuffs.

Tbe teal problem is not toe
tyranny of distance but the
tyranny of toe common agricul-
tural policy. If it were not for
toe limitations imposed by the
EEC upon the importation of
foodstuffs. New Zealand would
have little to fear from the dis-
tance involved. New Zealand
is faced with a situation in
which Britain, as a result of
joining the EEC, "has lost toe
right to import foodstuffs from
other 'territories without the
imposition of import., duties or
other restraints. One could
have understood it more easily
Ited this been a penalty imposed
upon us by a victorious enemy
determined to bankrupt the
UK. - -

We have very powerful in-

terests which try to tell toe con-
sumers of ' toe UK that there
is no more cheap food available
from - overseas, and that for
policy reasons we should not
seek to buy it even if it were
available. I do not think that
anyone can predict the possible
market for butter or tor any
other foodstuff in the UK in the
years ahead. It is possible that
' changes of 'teste, increased (or
reduced) prosperity, different
medical opinions may affect toe
consumption of particular food-
stuffs.

Butter is certainly a case . in
point. We are told that toe
consumption of butter has been
reduced. This is hardly surpris-
ing when toe operation of the
common agricultural policy has
had the intentional effect of in-
creasing toe price. Some people
distrust market -forces and con-
sider toat we are better served
-by giving unprecedented powers
; to toe -Ministers of- Europe and
to. toeir executives at Brussels.
I would prefer to take my
chance -with market forces
which, oyer the years, have
proved much more beneficial to
the people of the UK than any
of toe many forms of regulation
from which we have from time
to time suffered,"

In a previous -artibie (Decem-
ber 18 1981) Mr Chemngton
pointed oat toat “fanners’ re-

turns have- at toe moment over-
riding oipport from the com-
mon agricultural policy which
effectively keeps out imports
from the ''outside world by
means of levies and outright
prohibitions.” -. I suggest toat
tods Is toe real tyranny facing
both New'- Zealand and con-
sumers in Britain, and not
12,000 miles.

We must also be grateful to
Mr Anthony Riosen (May 29) for
giving, toe consumers of this
country a real insight into toe
thinking wito* supports toe
built in restrictions of toe com-
mon ag ri c ultu ral policy. He
wants Briti&h-tax payers to pay
New Zealand to pour milk down
disused coal mines.

When toe history of our rimes
is written I wonder what will be
said of the pol&tichats and states-
men of toe United Kingdom end
of toe EEC countries who, os a
matter of deliberate policy, en-
sured tost -toe consumers " of
Britain and Europe ' were
forced to pay high prices for
their daiiy food. This, after ail
is toe object and intention of
the common agricotturM policy,
and the result itas been a re-
duced standard of living for
consumers throughout the EEC.
W. A. Newton Jones,
c/o .W. H. Jones and Co.
(London),

Whetstone, N20.

The Wembley factor

From the Leader,

Hillingdon Borough Council.

' Sir,— I read with amusement
(June 3) Mr Paul Tyler’s extra-
ordinary analysis .of the
Beaconsfield by-election. I did
observe the campaign at dose
range. My observations on the
evening of polling day enable
me to identify the cause of
what he refers to as “the
remarkable level ' of absten-
tion.” It was “the Wembley
factor.” For some unaccount-
able reason many voters — pre-
ponderantly male — were glued
to their television sets between
7.30 pm and 9.30 pm, the hours
when posing is traditionally at
its heartiest I was unable to
dissuade them from watching a
football match whose result
was unpredictable in order to
vote in an election whose result
was entirely predictable.

John Watts.

Civic Centre.

TJxbridge , Middlesex.

Not so blinkered

engineers

From the -Secretary,

Institution of Mechanical
Engineers.

■ S&r, — Christian Tyler’s very
readable feature, “The:
blinkered engineer (May 27),
skilfully encapsulates; toe.
thinking toat -two years agolM
us in- toe institution to estab-,
lash a management ^vision to
extend as widely, as ptBsiWe
the managerial competence of
chartered mechanical ■ engi-
neers. Our aha tons matches
toe theme of the feature _whiaa
is to improve, the engineers 3
knowledge of those managerial
sms required to make a full
contribution to the -corporate
objectives of their organisa-
tions.

Our researches suggest that
our engineers have every incen-
tive to do> -just toat, because,
given appropriate management
training and experience, toe
engineer, of aH the professions,
is best equipped to W
the immense . technological
changes required - to : ehaWe
industry - to compete, survive
and prosper hi a changed^ and'
mm*. more

economy^

Our efforts! .are therefore
being concentrated upon the
post-graduate training required
to achieve -that aim- Needless
to say. hovfever. we cannot
succeed in isolation but must
rely on the -active support of
educationalists, employers and,
indeed, .the media if we are to
improve' significantly the status
of engineers and the standard
of engineering management in
industry.; .

Alex McKay,- . ; ■ ■

1 Birdcage Walk. SW1:

IHstribatii^weHare

From Mr D. Lindsay .

Sir,— While I certainly agree
with Ffank Field (May 20) that
toe tax dssteHi requires root and
branch reform to remove its
bias , against those supporting
children, and to eliminate other
anomalies, I cannot accept that,
once so pruned, it should play
any part iff the welfare system.
Indeed, alinori. by definition,
toose ; in- need, of- welfare should
not be. paying tax, and vice
versa. / purpose' of Taxation
is simply to ^provide toe funds
requfffcd by t the state (which
include, of course, those needed
for ' welfare), and if should do

this by levying taxes according
to ability to pay, such ability
being a function of income and
of personal and family basic
need. It is not toe place of toe
tax system.- to provide benefits;
simply- to be fair.

The principal reforms needed
to bring the tax system into line
with ' these objectives are
abolition of mortgage interest
relief, disaBowance of toe non-
pAraital - covenant for children,
re-intrOdudiou of . child tax
allowances, abolition of married
man’s allowance, abolition of
aggregation of spouse’s incomes
(and capital gains), partnership
status fortoe -l home-ninning”
spouse in relation to family
income, abolition, of- investment
income surcharge, and - toe
exclusion of investment income
(as it does not cease on death)
from the- calculation of
'maximum life assurance relief.

As -ft>r toe welfare system, I
am happy to leave proposals for
its reform to. Mr Field and his
more responsible friends, asking
them- only not to tamper with
toe tax system and not to waste
welfare funds -by dikributing
them where there. Is not -toe
need.

David G. Lindsay \

35 Orchard Gdombet

Whitchurch Hiil* .

Reading^ Berks*

A stock of skills !

From the Chief Education
Officer, City, of Sheffield

Sir— Hampshire's chief exeeu-
. five’s local solution (May 22) to
local education and training
issues aref fine, in toeir local
context. One could have no
difference with him so far as
he goes. But it is perhaips com-
paratively easy for him to
believe that his prescription is
adequate for Hants,: which is
bowired in toat Lbndon and
south coast area identified by
a recent survey as providing
50 per cent of all . computing
jobs in the UK It is a good
deal less easy to see toe abso-
lute truth of the local solution
and nothing but' toe local solu-
tion in places like mine where
toe employment tide of the old
industrial revoHrtann is ebbing.

A more complete view of the
country’s need for qualified
manpower would say that the
UK economy is going, rather
too rapidly for comfort, through
a process of profound change:
tost perceptive ■forward econo-
mic analysis and Intelligence is
urgently required for toe coun-
try as a whole: and that the
business of developing the
stock of skills necessary to
meet toe demand of new tech-
nologies and of new economic
management— and. so: to bring
regeneration in a more compe-
tent national system of produc-
tion and trade — is - far too
important to be left simply to
toe- chancy aggregate -perform-
ance of ■ 121 local education
authorities in Ckeot'BiMa.
Michael Harrison, ..

PO Box 67,

Leopold Street, Shejflf&t

22

Companies and Markets

UK COMPANY NEWS

Financial Times Tuesday June 8-19^ ; -.‘

Reed Inti, expands by £21 ,2m

DESPITE A sharp downturn by action taken by. printers and £20.1m (£20.7m): publishing Newspaper had .much reduced

the newspaper division taxable journalists

£501 m (£4l3m) and £30.9m profits as a remit of severely

profits of Keed International The pre-tax profit was struck (£25.flm); newspapers £254m competitive market conditions
advanced by £21.2m to £7l.6m after taking account of ex- '(£220m) and £2. Ira (£12. lm): and higher newsprint costs
for the 53 weeks to April 4 ceptional costs and provisions decorative products £26Bnj caused by the fall of sterling
1982, with, the final quarter con- totalling £19.5m (£22.8m). UX (£255m) and £0. 3m (£ 14.1m loss); against the U.S.. dollar.

tribution expanding from last rationalisation costs amounted to building products £133m (£124m) in decorative products. Crown •**' “■**■** Tr •*J r Metal Box, packaging containers

time's £S.3m to £15.9m. £20m of which £4m related to and £9m (£9.om). Central costs, paints, Poiyrell and the Canadian for THE six mnwttis ended and central besting equipment

paper. £2m to packaging, £8m to- net of property sales amounted., businesses had improved results. Man* si 19S2 ICL. conmuter manufacturer, were better ifam

ICL cuts
losses to
£13.5m

at midway

Metal Box to £40.2m

SECOND ■ heir' taxable profits of
Metal Box, packaging containers

nucou a l ai — ‘ ... r -t. . - — — . , ------ - - — -- vi, .. .. f 1 x 1 UWr L-O r 1.13ml | - mm [hi rwi d W. ^ T i n , . auu uaic

reased final dividend of 10p 1 9p) £lm from the disposal of sub- f£19~m)- ' after charging £8m (film) for wtth £33.9m last time, tnduadlng figure for the whole of ttie March

raises the net total to 14p (13p). sidiaries and associated com- Paper-making m the UK re- rationalisation that significant progress has 31 1982 . year- -to £40:2m, com-

The group's interests rover pantos. covered to a small profit before gliding products' again did been made in restoring profit- pared wtttVa previous £2ftJLin-

paper, paperboard, packaging. The profit was also after rabonalisation costs. The Quebec weu from UK home and export ability as quickly as possible, tfie Sales moved ahead by £119m to

printing. publishing (Mirror higher interest chutes of £12.5ra, MiU continued to perform well tradPf bu t the Sphinz ceramic directors stStfc £l-2bn.

Group Newspapers), wallcover- compared with £ 7.im but in- in a strong newsprint market, its business in Holland suffered The group's major maraower Mr D. Z. Allport, chairman and

ings and building products. eluded a- share of profit of results also gained from tiie frnn , thc severe decline of the reduction programme was chief executive, says there was

The directors say that although associates of £2.5m (£3.1m>. weakness of sterling. Packaging building industry in Europe. largely completed at the end of some improvement from the. UK

sales for the 53 weeks (up from Tax paid rose from £lUm to operations in the UK and T aDit _i was increased in March. .Tins, together wtiih other operations and a further signifi-

£1.48bn to £1.7bn) increased by £17.6ra. with the UK share Holland maintained profits and F „ hruarv b y the issue of £25m ratio nah sabot; measures should cant advance from those over-

no more than the approximate moving up from £lm to £6 lm market shares in highly conj- I?XT E uUood^d a pre- seas. .

rate of inflation which reflected after which the net balance petitive markets,
difficult trading conditions, at emerged £14.9m ahead at £54m. The group continued to expand
the trading level profits increased At the attributable level profits its profitable publishing and re-
frain £55m to £82rn -with im- were £54.1m' <E22.9m) after lated business both in the UK

iimve marscLs. " end "amounted to £21flm (flSfim) ' tax profit-' In the second half, in After tax . of '.£18J2m (£X4.2m)

»«* deposits ineressed by .excess o( ^e loss for t*e Initial

£9m and net 3ebt amounted to ' period, -they say.

well up at .16-3p, against 7.6p,

irum wam iu xa-ru «*iui mi- wcic wi.un ,«««* .atcu .‘MutBo.-. ... ««.c yix rFi4im> with rom nf tii a The - directors afeo announce and yritSi . a ..xnalntained final

proved results in many sectors minorities and an extraordinary and U S. Although advertising “JJJJ ‘ I' d m „ cb ™ plans to bring the badness of dividend of -&51p ' net, the total
together with reduced losses in debit last time of £15.4m. and circulation markets were for the vear Is lncre«ed from

together with reduced losses in
UK paper making and decorative
products.

divisional breakdown of weak, the combination of higher rci u„.

sales and trading profits for the revenue with the absence of tested £Wm (£o4m).

differences. Capita] expenditure Computer Leasings (CLL) into increased from

the group. ICL hoWa 5 per cent 10.71p to 11.55p. .

products. sales and trading profits for the revenue with the absence of - - f + r . - ifitZmA* tn A divfetonai analysis of sales

In addition, they point out that 53 weeks shows: paper UK losses from industrial action in 0n ^ a acqSre,^Juim30; wuriih and profits; befSehrterest and
no significant losses were caused £289m (£281m) and loss £09m the UK resulted m increased ™. ® cent fronTtfce tax, of £75.4m (S5.9m) shows:

by industrial disputes, compared ,£15.1ra loss), overseas £160m profits despite the cost of pro- iV 1 'me ano panum

with an estimated Joss of £12m i£l25mj and £23.3m (£17.5m): Tiding for the redundancy pro- ® lp ‘ u -® p

reported in 1981 as a result of packaging 1283m (£254m) and gramme at Odhaxns, See Lex

f £11. fim) and earnings per share per .cent tann the

B.lp (O.fip loss). financing participants at their o^en^ top £2Wm

_ _ par. vafue of £2.8m. . (£275m) and £L8m (£9. •fan),

reported in 1981 as a result of packaging 1283m (£254m) and gramme at Odhams. See Lex ^ ICL will also repay to the general line £1551tai (£133.3m)

same, over the period to and £10.6m.-(£5m); paper and

P TK j 1 1 1 A/*% -4 1 i • • i '■111 December 1983, cash advances to piartJcs £119An (£127.4m) mid

. Brotherhood £2.1m loss: dmdendheld agaa

cbLgfftHm . from cash . flowing overseas subsidiaries £5 13.4m

. , . from the wrfaHT hT Tdre- ■co gi ’tT* Bri^g (£400.1m) and £57. Im (£45.4m);

AFTER ALLOWING for redun- waste heat recovery turbine and duct group serving a defined with the dash for growth.- But IC t (-n^tomers.^ associates £3.4m (£3. 5m) profits;

dancy payments of £1.24m Peter political difiiculties in Poland market sector. Each division the gamble has not paid off, and rrn.- ne ; effect of the acauisi- central heating— Stored £107m

Brotherhood ended the year to meant that completion of one will return capability to meet plain old-fas hinnned cost-cutting *=__ +-1™ TVar^fVom <£101. 5m) -and £2.1m (£L2m

March 31 19S2 well in the red, of the group’s largest contracts existing and anticipated contrac- is now the nrder of the day. tcl’s P^bJ L loss)

the pre-tax figure emerging at was held back for several tural requirements and will be Peter Brotherhood insists that. --J*** based m current fore* Mr Allport says that in the

£2. 14m. compared with a surplus months. Both of these problems able to respond quickly to any engineering capability will not _ . -Qufoment returns bv UK the beverage can business

the previous year of £297.000. have been resolved since year- upturn in demand. be impaired, and the dividend custom-™ be to increase still gave problems, because of

However, a same-again final end. The directors remain confident is being maintained, but a profit- iocioo ni U-tax orofits bv more acute ovewsamarity ‘ in ■ the

dividend of 2p maintains the net As well as the redundancy that the group is well placed to able 1982 is not yet being ^ j a ^ a rang® ^ industry, but that “ robust

total at 3p per 50p share. payments the taxable deficit was take advantage of any improve- predicted. 1 n m *„ rmn, in a fuji year but action " has been taken in this

M 2?nJ? rou r h ? d al " ad * v ,I al,cn f* 130 after taking account of ment in world economy. reducing as existing CLLequipi area; the group is in. .toe course

f»L 3 -' 00 2 int0 f. 1 mld .;> ear 1 ^l e , r ®^ n . char f es °f £327.000 m comment _ , _ _ meat comes ofLtoe. of closing four unprofitable. two-

after charging exceptional items (£31/,000) and an increase in ® Coin 0 T t J First half turnover of TCTL niece can production lines at

of £84.000. The directors at that forward contract provision of At the interim stage the Peter JUairU LjTOUp S d to fiS m. L ainst wSlStMI. , ,

time anticipated increased sales £244.000 (£68,000). Tax took Brotherhood share price was 1 v 1? ^

and a profit in the second six £20.000 (C66.OOO credit). 150p and the company was “ con- flheadfsOtar ST •

have been resolved since year- upturn in demand. be impaired, and the dividend be to increase still gave problems, because of

end. The dfrertocs remain confident is beine maintained, but a profit- pre-tax profits by more acute overeaparity in the

As well as the redundancy that the group is well placed to able 1982 is not yet being ^ ^ ^ industry, but that “ robust

payments the taxable deficit was take advantage of any improve- predicted. ’ *_ in - r^t r w action ’’ has been, taken in this

Laird Group
ahead so far

£7m to £10m in a full year, butt action " has been taken in this
reducing as existing CLL equip- area; the group is in- .the course
ment comes off. hire. of -dosing four unprofitable two-

First-half turnover of ICL piece can production lines at
edged ahead to £335 m, against Westhaughton. ».

The modernisation erf UK
radiator, production is nearing
completion and the Monmouth
factory is being dosed. As a
result,- the .chairman says, the
central heating business— -the
group’s other problem area— is
showing signs of an improve-
ment!

The general line side made
“real progress." as to a lesser
extent did the paper and plastics
division. The engineering sector
performed better, "the chairman
states, 1 most of these improve-
ments : coming from increased
productivity..

Funds -generated during the
year were less than planned,
and although the increase In bor-
rowings was well within. manage-
able limits, there was an increase
- of £45m over the year, Mr Allport
states.

The company will continue to
invest where, this is deemed
essential, “but in the current
year absolute priority is being
given to cash generation and
conservation."

He - adds that paramount
Importance is' attached to
improving profitability nf the
company's UK business,, build-
ing on the energetic steps which
have been taken to contain costs
and improve productivity.

Towards the end of - the
current year, some improve-
ment fn demand . and -price for
the packaging business in UK
should take . place, Mr All port
says.

However, plans for this year
are not based on the assump-
tion of “anything more than a
very modest increase in level, of
sales in this country."

He adds that the uncertain-

and a profit in the second six £20.000 < £66,000 credit). 150p and the company was “ con- »hCad SO fSUT

months and expected the The directors say that it is fident " that the second half- a,lvau SIS

recovery to continue into 1932-83. necessary to reduce the croup would show a profit. Redundancy Trofits of Laird Group for the itw zZ ' mr hut

Full-year turnover of the workforce by 200. Operating costs of £1.15m apart, the second first four months of the current thpr* J!r m iw

group. a manufacturer of cost savings will be in the half showed a trading loss of year were ahead of last time. Sir ifon inclrt^in^ nraSas mSkets

Anderson

ties of the present are b£3i.«icix
that it would not be pruaetit qt
t h> p stage to be* specific- as. to :
the scale of the improvmtekt,y
Associate companies'! : share -qf
profits rfor the year were JQtUe, .
changed at '£3.4xn. (£35nU hut
interest charges expanded by,
£8.4m to £3 5,2m. -

Mlnority interest took'.'. £9^4 .
against £9.1m, leaving prbfils jttt
£12.4m (£5Bm),- but- there wettf .'
extraordinary debits totaffing
£30.3m for the 1 period,; against .
prdvi ous £21m. • > _ ; -•> « - >"'5^

Of these items some.
for redundancy pay?nen
the balance for. write^dqwn- hr
respect of plhnt, equipaieht '!and
inventory . surplus to . require- . '
rnents on factory dosiireBr vbA. -
other costs. The charge .wflLonlj^ -
partially affect. cash outflb^Jt
is stated.

A revaluation . of land! v »rid' •
buildings during the year ire-. <
suited hi- a £63.Im net- L sui^iuif r . j
which has been created tore- J
serves and minorUy interests. ■* - (
On a CCA basis pretax
are reduced- to £16.6m ]

loss). ■ ’■ f

Mr Allport said later: that-afier:..
two years . of effort. -on .redudhg -
operating . costs and' - Tatefag
productivity in the

with some confidence
rationalisation process Triahld', be.

" much more gradual froinvnow .
on."

Commenting on the fAct- that •
the cash position Gad. ''.heed
adversely affected hei.^d^is^
group was giving “high -priority.,
this- year -to rectifying .this ■
situation." He added that a. triads .
issue was - not on the numerate .
horizon. ... .:•!./ VV.I..

See Lex ' _ ;

■ ’ ' .-

machinery and power plant, region nf £1.5m a year. The net £3S9.000 and yesterday the share j a n Morrow, chairman, told ir _

declined from £16.69m to cost of this redundancy pro- price fell 6p to a 1981-82 low of shareholders at the annual meet- ient^SsTn^ ^ liSr witlToreS

£13. 15m — the second-half figure gramme will be £850,000. Prom- lOOp. Not so long ago Peter j n g. And the group faced the Ji-irtnrsrtatfc™ 11 equipment

being £6.7m (£7.6m). Operating sion for this was included in the Brotherhood's change oF market- future with confidence, on the p,ans * ine turectors sta

tion in certain overseas markets. . .

The resultant modest improve- TAXABLE PROFITS of mining
ment was in line with overall equipment manufacturer

los» "for the year was £332.000 results for the year under ing~ strategy towards" high tech- basis' IhafV ~was ' in "a 'sound stoaiply from £6J3m to £1146m

(£682,000 Profit), after interest review. nology energy conserving pro- position to develop its business trad ine loss, before inter^t was* * ot year ended Mhrdh 30,

receivable of £237.000 (£87.000). To ensure that the maximum ducts had endeared it to the further, he said. f 10 1™ tTm Bn? 1982 after redundancy and

Commenting on the results benefit is obtained from the market, and the dash for growth cum™ .v™,! «i«. i» s h «T^t,i^ reorganisation costs of £499.000.

thpv nnint nut that failure of » r^HnNinnc th- m.m u hMn<r t..« nu . v Almost £100tn export sales bad mainly because of the lower cost

Anderson Strathclyde advanced

(£682.000 profit), after interest review. nology energy conserving pro-

receivable of £237.000 (£87.000). To ensure that the maximum ducts had endeared it to the
Commenting on the results benefit is obtained from the market, and the dash for growth
they point out that failure of a reductions, the group is being based on boosting turnover
European shipyard resulted in reorganised into separate divi- seemed to herald sharply rising
delayed delivery of a major sions, each responsible for a pro- profits. Turnover in the year to

l___j __ la^rtHitsn tiimmmr AlUIUnl HUVUI L OUIC3 UCIU lUCUiUJ UCCdUAC U1 U1V 1UWCI UAi -^”7 - T _ , . ’ ’

c b “®i ri been won so far. dominated by base of the business, resulting apmst £S40£0^ and intorest

p" filS d T l .moveri 0 lE V t? £2L.J^« r - nHonrttaUm *9H,000 at

EUROPEAN OPTIONS EXCHANGE

i Aug. Nov. Feb. i

Series ■ Vol. Last Vol. . Last • Vol. i Last : Stock

GOLD C

S323

62

19

3

54.50 B

-

- .1325,50

GOLD C

S350

96

10

10

22 /

9

32

GOLD G

5375

5

5

—

—

—

GOLD P

5300

—

—

— .

—

16

18 ”

GOLD P

S325

7

15

—

—

—

- J »

GOLD P

S550

3

32

7

35

GOLD P

5578

10

52

5

52 A

—

121. NL
P

81 87-91
F.llOl
F.1 12.50

100

0.70

— IF.112,70

P

100

1.70

1 —

1 —

1 -

1. - 1 ..

103. NL BO 86-95

0 F. 102 . 50 ;

_

4

1.10

-

- IF.101.70

111. NL 88 80-82

C F. 103.501

5

1.60

- .F.103.70

1 c

F.105

10

0.50

—

—

—

— 1 n

1 P

F.105

50

2J20

—

—

—

~ 1 n

1 10 NL 88 86-89

1 C F.10QI

_

-

4

I

_

— IF. 98.00

AKZO C

F.25;

July

Oct.

' 19 : 1.30

Jan.

~ F.24

AKZO C

F.37.50.

—

-

13

0.60

—

AKZO P

F^5

100

1.30

5

1.80 E

—

AKZO P

F.27.50:

7

3.90!E

10

3.60

—

AKZO P

F.30.

—

10

6

—

HEIN C

48

5.20

—

—

~ F.60 JO

HEIN P

F.60

—

—

5

3.40

—

- 1 ..

HOOG C

F.15

—

—

30

1.40

— |F. 14.90

HOOG P

F.17.BO.

16

2.80

_

— r rt J

IBM C

S60:

—

—

6

4Ua

- -SBOaa

IBM P

560,

6

n«

—

- 1 „

KLM C

F.B0

15

10 b;

_

- F.88,.80

KLM C

F.90

ZOO

3.70 B

104

7.60

1

KLM O

F.lOO'

4 a

1.10

73

4

16

6 i ”

KLM C

F.llOl

140

0.70

27

2.40 A

• KLM C

F.120;

15

0.20

28

1.50

10

2.50 1 „

KLM P

F.BOi

47

1.30

42

2.80

_ |

KLM P

F.00

104

4.80

97

6.50

J

KLM P

f.ioo;

179

12

26

12 JO

KLM P

F.llO'

9

21.30

—

NEDL C

F.iao:

—

7

3.60

— IF. 114

NEDL C

F.I30I

—

- !

13

2

NEDL C

F.140

7 ■

0.10

- 1 "

NEDL P

f.iio;

13

1.10

50

3J20

_

NEDL P

F.120;

12

7.20 B,

25

7.50 ;

_ 1

PHIL O

F.22.SO

—

•

60

1.70 1

— 1

- F22.90

PHIL C

F.23

216

0.20 :

60

0.70

6i i

1 : „

PHIL C

F.27.50

40

0.50

- 1

PHIL P

F.ao

20 ,

0.10 !

- 1

PHIL P

F.22.50.

_ 1

6 1

0.90

23 i

uo • ,.

PHIL P

' F.25:

77 1

2 .B 0

—

33 !

2.40 • „

RD C

F.70

• .

- 1

6

11.50

- 1

- F90.60

RD C

F.80

SO i

11 >

— :

- RD C

F.90

200

2.90 i

57 !

4.80 |

a :

6.50 1 „

RD C

F.IOO

40 ,

0.30 .

•28 ■

1.50

23 ,

2.50 ' „

RD P

F. 6 O 1

— .

— .

16 J

1 :

-

RD P

F.90I

269 '

2.20 1

177 1

4 l

6 1

4.80 |

UNIL C

F.150;

— s

|

. is |

4JSQ

—

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UN1L C

K.160

— .

j

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2.70 ' ., 1

UNIL P

F.140,

20

1 1

25 i

2.90 b|

- i

“ i ..

I [TOTAL VOLUME IN CONTRACTS:

1 1 A-Asked B~Bid

3671

C=Call

.3

P=Put 1

£123,000.

The 76 per cent rise in the

March" I n S2 in fact fell by "l Elsewhere in the group, however, measure*. £123,000. ' •

DerrenL Market share has been demand had fal,en back * particu ‘ Tota] worldwide group The 76 per cent rise In the

increased but* the market has lar, - v 1n components for aero- borrowings, as at March 31 last pre-tax figure was in line with

taMkS MM engines and in buses - £132r ^ deducting cash estimite given by Sir Monty

hood has had to sell at 1979 In the U.S. trading conditions ““LSr'S?^ v 6 £ F™ston, the chairman, in -.a

prices against a backdrop of 1982 were extremely hard and were ?i_f xpo i x _ cr * a,t f- defence circular to shareholders

costs. Brotherhood now con- expected to remain so during the September 30 198L the

cedis that “ we almost got away year. S'AMdi™

hut the former was before the j X flWf H lllll

Dencora raises £1. 22m S&SiSSi 8 at Gill and
and seeks USM quote . . SFim Ouffus

> , Anc:Ila “ Justria! and warehouse units m raa j or rationalisation measures PROFTrABrLrrY at GUI &

industnal property development East Anglia has been built up cost about £40m in cash durine £ K _ a . “

and investment group, is seeking with developments funded by f “ l2moiS? to Mid J 15 r ™ n 8

a quotation on the Unlisted hank loans, primarily from Chase March. materially lower level than

Dencora raises £1. 22m
and seeks USM quote

in May backing his rejection of
a £64m cash bid for the group
made by Charter Consolidated.

The offer has since been
blocked by a reference by the
Department of Trade to the
Monopolies and Mergers
Commission.

Turnover for the year rose
from £8. 42m to £10m and at the
trading level profits were
£11.78iii. compared with . £8-22m.
Tax took £3.08m (£1.6m) after
which stated earnings per share
were 17p (10.4p).’

The total set dividend is also

in line with forecast; 'zMag!; by
50 per cent to 6p by a flaw -of .
4-9p. - - - • -

The increase in turnover: "r'vste >
achieved in spite of the inter- !
nationally depressed econmntc'j
situation. As expected, tbe'-'rsite4i
of increase Which was achieyed l
in the first half, ntbdenigett 1
slightly In the second sixmonths.

The fuR year Increase bnWgbr
advantage of higher margins on -
the additional volume. .

Od a CCA basis trading 'proflfs
were £5.79m (£2.3Sm).

Downturn
at Gill and
Duffus

N. Brown jumps 44%

Securities Market, following a Manhattan

If net borrowings are adjusted

has been the case for some
years," chairman Mr' David Pear-

fl.22ra placing. Stockbrokers obtained chiefly from -local for these three factors the mm p years," <2, airman Mr David Pear-
Phillips & Drew are placing authorities on a long leasehold generated a net ^ash inflow of »<» told the annual meeting.
2Jra ordinary 25p shares at 58p or freehold basis and standard £i5 ra during the vear to end Mr p ® ars011 said i* was 100
each, representing some 17 per. type units are constructed using March 1982, they state. M This e - y tD *°f® ca ® t 1982 P”»fite.
cent of equity. sub-contract labour controlled by achievement reverses the trend said later that his

The placing prices values the the company's own site fore- nf the previous two years when remarks PTI this year’s profita-
company at £7.02m in which man. - the group suffered significant Wlity should not b e compared

founders and joint managing In addition to the property net cash outflows” tt 1 ® 1 exceptional losses in

company at £7.02m in which man. - the group suffered significant Wlity shoilld not b e compared

founders and joint managing In addition to the property net cash outflows.” t* 161 exceptional losses in

directors Colin Holmes and side the group has an iron- Although the present economic Hon S Kong last year.

Richard Youngs each retain an mongers and builders' merchants environment is less favourable The chairman told the meet-

interest of about 37 per cent. business with a warehouse and than the group expected a year in * 35 Previously intimated
Mr John Laurence, a senior two reraii shops in Beccles. Up ago. particularly overseas the trading in virtually ail the corn-

partner oF chartered accountant to two years ago this business directors say there were some P 311 ^ markets continued to be

and General Investments, was

r n S .f pr .w i 4 c position towards the end of the

Over tee last five years pre- first half. "For the full year.

The money raised will he 1981. But net rents received

compares

um uri i cuib leceivea year

from ,*149.000 io J(X sells equipment to CLL at
£8^,000 before net interest costs prices comparable with sales

^’ ear direct to customers on the basis
wwiimli ■ c,81 * pno and that customers will maintain
£ 38.000 respectively. their hire contracts in being for a

At the placing price the specified time. ICL has an obi iga-
m stone p/e is given as 32.2p. don to repurchase equipment
»rnv.,ih 1 « n 1 , f ls base Should this be returned by the

Tinn nf w b '5h propor. customer— ICL provides far this

h „ J=,^i!! rt . b ''J > !;L e S 2!?.**" S? 3 dpf erred UihiUty, Leasing

L M UiUtfc " " . .. ,

rds the end of the Because of the recession, the
For the full year, world is in an over-supply situa-
ss and order levels tion for most commodities, and ■
ewhat ahead of last ' th, * s n*tnrally reduced trading |
opportunities, he said. i

ON A 5 per cent increase in
turnover from . £28.55m to
£30. 05m, taxable profits of N.
Brown Investments jumped by 44
per cent from, £2.13m to £3.07m.
In the year to February 27 1982.

Earnings per 20p share of this
direct mail order • business are
stated at 13.92p (13J26p), while
the final dividend is being raised
to 4p (3.5p) net- making a bibber
total of 6p (4.5p). .

Mr Davoud Alliance, chairman^
says, the group seems to have
reached a profitability platform
from which increases at the sort
of rate — 40 per cent to 50 per
cent— enjoyed during the last
three years must be considered
difficult to maintain. Sales for
the current year, however, are
ahead of the first three months
of last year and he is therefore
hopeful iff at least “ respectable
growth " again this year.

He says the rise of only 5 per

cent in turnover is misleading
because of the- effects of -a. fire,
at the group's principal - mail
order warehouse last June. . This
caused damage to the premise*
and stock, resulting in . severe-
.disruption in_ seryice and loss
of sales.- ' ; ' ■■ •;•-/■

Insurance Indemnity has been
received for the damage but the
directors are of the opinion that
but for the fire, group turnover •
would Have been £3.5m more
than achieved, which would have
represented an increase on the -
previous year of IB per centM

Tar took £1.32m ’ (£466,000),
leaving net profits of £1.7fan
(£1.64m), and after extraordinary
credits of £119,000 (£87,000

debits) the attributable surplus .
emerged at £l_S7m (£1.58mj. : At
the half , year stage the group
wps already ahead with pre-tax
profits of £1.02m (£805,000) . ;

Losses at
Caffyns cut
to £0.22m

S Wr nolM° 4a »„d P Mr Ymincs. K.nuntee Pro W

B. wort two or .the roonders of ohI. y f ™*'* intended to

Taxable losses of Caffyns, auto-
mobile agent and engineer, were

■r* nf ahle - fl ' tip ronTnanv 1S tended to coyer the reduced from £383,792 to £222.194

iviwita mil a sue in R pre I es, rpvicw in 198.3 mr! the ’■“T 1 ; 1 *” v™*™ pension moo contnouuons

uffnlk. Two years later Harvey ^nush TndStrial lLnd7n?«l^ cost ess ICL s imputed deprecia- totalling £1. 85m, compared with

nd Leecun local housebuilder n^devHopraentsnJSrat Uo i> to dateof repurchase. a.94m. The loss included a

Of to. saaa-s- f »

~ " I EM “

abie to CLL on repurchase— at 1982 after deducting -interest
gll s net book value — and the charges, depreciation and staff
value, to ICL based on original pension fnnd contributions

The Fleming

Far Eastern InvestmentTrust
Public Limited Company

(Formerly The Guardian Investment Trust FLC)

Results for year ended 31st March. 1982:

and warehouse unite inprpacinc “ F „ ° n Turnover rose from £56.71m to

tfitai space for Tetline hv cnmS acquisition ICL will write these ^3.27m and at the trading level
50 per cent 8 y SOme ass ® ts do ^J 1 f td tbei J’ original profits came through at £905,234

comment

■ assets down to their original profits came through at £905,234
costs to ICL, less the group’s (£1.2470). Tax took £101.443
imputed depreciation to the (£103.243), and after extra-
acqmsition date. The related ordinary credits of £129,943
f , I J e ? s, ?£ r Re ¥" r 5 base (£33,045) there was an attribut-

Dcncnra stands out from many E?? tbe Leasing Repurchase (£33 045) then
properly developers and inves- Provision held by ICL will there-' ab le' deficit of £193 694
tnrs because of its direct involve- f0 £ e no ,on Per be required. (£448 990) '

moot with construction. It has The total dividend is held at

also established a good relation- J* 5 4.5p net by a final of 2.3p (same),

ship with local authorities for a L, *i ne 30 next * w111 b® avai1 -
Fcctirinc valuable sites thus a . We for _ credit to ICL’s reserves

WORLD OF

KNOWLEDGE

S fci On salenow £6.50

Ten Year Record

ykario

31st March

Gross Earnings Net Net

Revenue per Share Dividend Asset Value

£ : 000

3972 1,619

1980 3,856

3981 3,981

1982 4,266

^Including special dtcidend of0.70p.

P

129

*4.60

4.70

470

P

106.9

ioa7

147.7

153-7

ship with local authorities for *Li < i ne 30 be' avail-

securing valuable sites thus up a . ble f °r credit to ICL’s reserves
front costs of a development are s,n ^ e . ,. IS liability should not
little more than the actual con- *" at ®naliee within the group in kJUUlUCUll
structinn work. These factors, tiie roreseeabte future. . o, j- •

tocether with the use of standard ah T^ on ICL’s reserves ktadlUIJl

units, has enabled it to keep f improvement in net ^

huildme costs well below aver- W ±-8ra. Taxable profits of Southend

age and exposure risks low. East Stadium declined from £147.100

Anglia has not fi cured highly as S!lj ree Atr t00k ^ £14 *Sm). to £121.835 for the 1981 year,

a growth area in the past but ?°Vj_ tax was “■* Da » against Net receipts were also lower at
improved road links are helping £84556, against £132,931,

to chance that. However, whUe cnS-. - interest amounted The pre-tax surplus was after

rent reviews should take' the !°.j w ! tb i0 - lm » tote tax of £56,395 (£68,886), but

croup's income weTJ over £lm axennut ame loss came -included rente receivable of

next year, tire high level of uHt a !u,L 6m *V wi H«J^ £34.flm £88^12 (£82,446) and investment
borrowing leaves tbe company’s ii,!5 , tbe P®” 0 ^ income of £5,762 (£609). Tax

ability to expand very much at SS S'etaSi** “ GXtra ordinary took £55424 (72.733). leaving
the mercy of Interest rates until jl 1 Df . . m » get profit of £66,411 (£74^67).

there is a significant strengthen- e 18 811,611 85 ?^ e dividend for the year is

ing in the rental market / '* Dp . bring increased from 0.43p to

See Lex 0.47 d net per 5p share.

M - J- H. Nightingale & Co. Limited

27/28 Lov« U„ London EC3R 8EB T.l»hn.. n.^»

ing in the rental market

Hie dividend for the year is
bring increased from D.43p to
0.47p net per 5p share.

The change in policy to that of a specialist Far Eastern Investment
*Ihisfc approved by shareholders on the 13th April, 1982 is being
progressively impl emen ted. Tb date we are 45% invested in this area.
The main eniphasis will be on capital growth.

The FleroingFar Eastern Investment Trust PLC,

P&O Building (2ndEloor), 322 Leadenhall Street, LandonEC3V4QR.

Telephone: OL-283 2400.

, Pr>e#

Juns A + or —

Banco Bilbao 356 4-2

Banco Contra I 3U 4-4

Banco E*te.nor 309

Banco Hispano SIS

B-wsn lad. C»t 114

B^nco 3a*»t«f»dof 331 +2

Banco I'rQixJo 193 -

Banov Virceya 368

Banco 2arago2a 2SO

O'-.nados 136 —2

Howwa Zinc - 70

Fet-,8 ffi.2 40.2

0,6. Pfco»do9 34 41

HwtrcKa 67 “0.2

iiwrtuf*s • 51 5 -

Ppuoieos 92

P*»tn?l«bor 90

Snoaina : 10

T^Vlro-ea 71 40,6

Uivoit Pact. 62.S -0J

DIVIDENDS ANNOUNCED

P. Brotherhood

Caffyns

Reed International

Date

Corre-

Total

Total

Current

of

sponding

for

last

payment payment

div.

year

year

.. -4.9

Aug. &

23

6

4

. 2

Oct. 1

0

3

3

. 4 ’■

—

3.5

6

4-5 '

2JS -

July 23

2.3

4J5

4.5

. 3.05

July 22

2.6

5-3

4JB5

. 6^1

July 23

6.51

11.55

10.71

10

Aug. 17

9

14

13

. 0.47

— .

0.43

a47

0.43

1881-82
High Low
120 120

130 100

75 G2
51 33

212 187
106 100
1 285 210
104 51

131 97

83 39

73 48

102 93

TIO 100
113 84

130 10B
334 232

87 51

222 158
15*, 10
80 68
44 25

103 73
283 212

Company

Aas. Br,t. |„d. Ord. ...
Am. But. Ind. CULS..-.

AJraprung

Armitaga a Rhodoa‘1"”

Harden Hill

CCL llpc Conv. Prai”!’
Cindico Group
Deborah Sorvicoa""”""

Frabh Horae 1 1

Frederick Parker "

George Blair

Ind. -Precision Castings

Isis Conv. Prof

'Jackson Group
James Burrough
Robert Jenkins

Scruttons “A"

Tordey a Carlisle
Twinlock Ord.

Twtnlock ISdc ULS

Unllock Holdings.

frtces now available

D . Gnws Yield • Fully

Price Change div.(p) % Actual taxed.

JS- — e.4 5.3 10^. 13^i ‘

!27 -1 io.O 7^ — ■ ' —

« — 6.1. 8.4-.. .8 j- -143

^ - — 4-3- 10.0, 3 JB >8.1.

— 2-7 4.6 •. ioj;. i2J!

. — 15.7 14s: .'V-

— 26.4 10.0;vioi7 " T2.0 :

tie “7 6 0 a.a-,-3.0. 5J

“ 1 6.4. -5.0.-1118 235

S — 6-4 8.5 3JI 7.3

75 —

54

“ 1 Z 3 7A 7.1- ftOH

- -r ’5.7 14.3 — —

IMsd - 3 7.0 7.3 3.2 B.B

IS — 8.7 7.8 .&3--10.S

. — 31.3 13^5 BJZ

1SB _"T ,?'? 7 -S. IZ*' 12.0

158 - 1 n.4 7-2 r , 12J2

15 — 04 . — _i.- .. ..

2 ' + .1 . 15.0 1&2 — v —

= 3.0 • 12.Q ;j4S ■ ■ 7.8-

— 6.4 7.7 Sr - 9.7'

235 — 145 SSL . ; a2 ’125

on Prestel page 48146. .

25

83 —

235 — -

Dividends -showu penes per share net except where otherwise stated.

. * Equivalent after allowing for scrip issue. * t On capital
increased by rights and/or acquisition issues. tUtiM Stock.

_._V

LADBROKE INDEX
Close 588^33 < 4-5)'

THE TBIN^HATiZ
USM-M)EX .=: ^ -
125.7 (+0^3) ; /
Close of bnshiess^

BASE DATE IQ/ll/SQ 100:
' Tel: 01*638 159I - V

He 8

l SS2

; ®sea* a

! ??'£as

-•■‘SC!

•^es

“sw

-a. ejcp ^

Iftsitis

; 4j

;* P «rtni a >v

* Vi>

set.-..-. . V> tu n $

*o

ir.., „.:'■**%?

** *3$

-'■. , -« _ • ?e-

*r -.£S

V;,; r > ;vt r? .N

i’-V' =:?r ;V... ..

' *r«i ^

J* -* .' r 2; ;.

. rril V;,‘V '-Wj:

*- 5mni j

! - ' ,r ' ft# *.

e<T t

r-c %:> • .. fi w u

v>r.:' -?, ' a,l » >
!■= '"-fc.V.ftJ.Pnt-
5 . _'. ,: ^ li

■: j- - Pt * *Bt

ste Le £

49r

?"■" • r. 'f-is
; •■ ■■■•*€&!

'. "STM

■ -j;ms

■ -'. HS

Trnies Tuesday June.. -8- 1982

Conpaniss aad Markets

23

UK COMPANY NEWS

BIDS AND DEALS

Duport to
liquidate

targe

.: -“ :ir ^Bi:

" ’• -. s fcui-

r V, :’ *'■ r

,••• ■ » -• •>: ^

• • ‘ •-■•'•: p '

i

By Ray Maughan

.■ Dujfort, the' metal forming,''
fUnrimre and plastics group has
decided to put its still subsidiary
into liquidation in an effort to
deflect , the Govern meal’s
“ remorseless ” pursuit of grant
recovery. -The grants— £2_2m in
regional development grants and
' a farther £lJm from the Welsh
Office— now add up to some £4m
including accrued interest.

. They were paid to assist.
Duport set up a major steels
plant -in Llanelli, South Wales.

BOARD MEETINGS

The following companies ham noti-
fies dates of board meetings to the
Stack Exchange. Such meetings era
usually held for the purpose of con-
sidering dividends. Official indications
ere net available as to whether divi-
dends are interims or final# end the
subdivisions shown below are based
mainly on last year‘s timetable.

TODAY

Interims — Archlmadea . Investment.
Bass. Carr's Milling Industries, Robert
Kitchen Taylor.

Finals— Atkins Brothers {Hosiery).
Capper-Neill. Cullen’s Stores. Doara-
fontein Gold Mining. Drieiomein Con-
sal ids ted. Fleet Street latter. Kloof
Gold Mining, James Latham. tibsnon -
Gold Mining. Premier Consolidated Oil-
fields, Scotcros. Sketehlsy. Venterpost
Gold Mining. Vlaktentein Gold Mining.

FUTURE DATES
interims:—

Crest Nicholson ......... 4-i June 15

Finals:— .

Butterflsld-Hsrvay June 15

Charter Consolidated ...: June 22

Cohen (A) June 10

Electre Investment Trust June S

Eva Industries '• June 8

Ferguson Industrial June 14

Highares ...i June 9

London end - O'seas" Freighters t June 18

Powell Duifryn - — ........ June 23

Standard Fireworks - Jon# *7

t Amended. : .

an investment which “ after
four months of running beauti-
fully,” as Mr John Hassell, fee'.,
ctrairraan, said yesterday, farced
the group into ' a financial casts.
18 months ago.-"* 1 v ' . :

'. The group has -resisted the
Government’s claim in the belief
.that the Department of Industry
acted unfairly, in supporting the
British ■ Steel Corporation’s
aggressive .pricing. •.. policies
through a deep recession.

Although DuporfhaS taken pre-
liminary counsel's advice feat its.
resistance is legally supportable,
it is to appoint Mr Guy Baker of
accountants Ernst and Whinney,
as liquidator of . the steel sub-
sidiary. • This' would mean feat
the Government would rank only
as « conditional creditor
*1316 liquidation itself should
be very straightforward, British
Steel Corporation'-: < Overseas
Services) wiD take fee remaining
equipment — the melt unit— for
£2m leaving only land andbufld-
ings in Llanelli wife a book value
of £500,000. . . ■ . ; _ v '

to try

shake Berisford off again

, BY RAY MAUGKAK

British. Sugar .is going back to
fee EEC Commission - Math
additional submissions in an
attempt to shake off its 40.02 per
cent shareholder, S. and -W.
Berisford. Time, however, is be-
coming . tight as fee EEC has
imposed a deadline but of vastly
greater importance, Berisford
will be free to bid for fee beet,
producer onee~xnore from July
1 onwards.

British Sugar has been,
attempting since February to
convince the European Com-
mission feat Berisford's stake is
in contravention of Article 88 of
fee Treaty of Rome, in that it
had abused a dominant position
m a major EEC market

, Thus far, the Commission has'
been less than enthusiastic in
its response to British Sugar's
pleading and, in an interim'
judgment delivered at the end of
last month, concluded feat there
was “insufficient evidence” to
force Berisford to divest
. It is now understood that fee
Commission was quite emphatic
in its ruling and concluded that
the acquisition of a major pro-
ducer by a merchant such as
Berisford would not harm the
remaining traders and any such,
deal would hot inflate prices
artificially.

Nevertheless, the beet . pro-,
ducer remains undaunted and is
currently - preparing fresh

evidence. Consideration of an
appeal to the European Court of
Justice in Luxembourg now
appears to have been shelved;
fee Court would decide fee issue
on points of law which Is hot
what British Sugar is seeking.
It is attempting, instead, to “ get
a . -dialogue . going . and to
crystallise the situation,” a
spokesman for. .fee group said
yesterday. -

the Commission Has already
called for and digested copious
evidence since British Sugar
started proceedings four months
ago but the supplicant remains
confident that it can .stimulate a
fresh interpretation of its uneasy
relationship wife Berisford.

Jas. Fisher deal with Hunting

James Fisher and Sons, fee ship-
ping, port terminals and marine
services group, has agreed in
principle to acquire a number
of shipping activities from
Hunting Gibson for £3.65m.

Fisher announced yesterday it
will pay £2m in cash, £850,000.
in the form of a bill of exchange
maturing on June 30 1084 and
fee remaining £800,000 by fee
issue of new James Fisher
shares.

Fisher will buy Gibson's -
wholly-owned Westfield Shipping

subsidiary, a company which has
fee. mv Thames field, a 50,310 dwt
lumber carrier on a profitable
long term charter. The vessel has
relating financial obligations of
818m (£7.2m).

It will also acquire the busi-
ness of Hunting Stag Manage-
ment, which has staff wife ex-
perience of deep sea tonnage,
including fee operation of large
bulk carriers. .The company
manages the mv Thamesfield,
vessels owned by Stag line,
which is another Gibson subsi-

diary, as. well as vessels for other
shipowners.

Finally, Fisher will acquire fee
mv Sillofe Stag, a 1,165 dwt
general purpose vessel . engaged
In coastal, and short-sea trade.

Fisher 'said the deal will
allow It to expand its specialised
shipowning and' ship • . manage-
merit activities while Gibson said
Fisher will be able to make
investments in these areas at a
level which Gibson, could not

matc h. _■ .

Pernod buys whisky distiller

THE FRENCH drinks group,
Pernod Rieard. yesterday an-
nounced a further expansion of
its foreign interests wife fee
acquisition of William Whiteley
fee London-based whisky
distiller.

' Pernod’s Campbell Distillers
subsidiary has bought Whiteley’s
London headquarters, fee
Edrador distillery at Pitlochry as
well , as 'a number of whisky
brandnames from J. * and G.
Turney for an undisclosed sum.

: House - of Lords and King’s
Ransom, both blended whiskies,
and Glenforres Glenlivet, a malt
brand, will in future be bottled
at Campbell's Kilwinning plant,
though distilling will continue at
Pitlochry.

- Whiteley. which exports 85 per
cent of its production, will con-
tinue under its present manage-
ment Pernod said. • .

■“ Besides production advan-
tages, this acquisition allows us

to complete our portfolio of
brandnames and diversify our
whisky export markets,” said Mr
Thierry Jacqoillat, Pernod’s
managing director and chairman
of Campbell.

Pernod, which claims to be. fee
worlds sixth largest drinks. group

has been expanding abroad, last
year acquiring Field Crest Im-
porters, a UB. company for
$210,000 following fee $9 7.5m
acquisition of Austin Nicholls in
{1980. It has also taken over
importers in Spain, Switzerland
and fee UK.

MINING NEWS

fall in profit

BY KENNETH MARSTON, MINING EDITOR

MALAYSIA’S tin - producing
Tronoh Mines looks to be facing
a fall in earning this year
following a recovery in 1981
which was provided by a gain on
a land sale.

Raja Badrol Ahmad, the chair-
man, says in the annual report
that tin production and prices
this year will be lower and sales
of tin will be restricted by fee
quota allotted to fee company by
fee International Tin Council.

- He. point out feat while fee
tin concentrate output from the
company’s two dredges is
expected to increase slightly fee
retreatment of tin-shed residues
is now almost completed.* '

The 1TC sales quota allotted is
about 70 per cent of Tronoh’s
anticipated production this year
from April 27 until fee end of
June, “ therefore a significant
stock of unsold concentrates will
be accumulated.”

Even so, the chairman com-
ments that the International Tin
Agreement “has been a stabilis-
ing influence on the tin market
to the benefit of consumers and
producers alike and it offers the
best prospect for a healthy tin
price in the future ” ■

He thus finds it disturbing

feat fee proposed Sixth Tin
Agreement failed to gain suffi-
cient support from consumer
members to come into effect
from July l next. But he says
feat the sixth ITA can still come
into force ** if those who have
signed it meet and renew their
resolve to participate in it, albeit
without some members- of. the
fifth ITA-”

Tronoh’s tin concentrate pro-
duction for the first four months
of this year -amounts to 174
tonnes compared wife 204 tonnes
in the same period of 1981.

Meanwhile, output figures for
May announced by the Malay-
sian tin producers include feat,
of Gopeng which makes a total
for fee first eight months of the
current financial year to Septem-
ber 30 of U206i .tonnes compared
with 1,057} tonnes a year ago.

The small Tanjong has pro-
duced 47} tonnes in fee first five
months of this year compared
wife 65} tonnes a year ago. The
latest output figures are com-
pared in fee following table.

May Apr Mar

tonnes tonnes tonnes

Gopeng M7% 159** IBS 1 *

Mambang ... 30 46 43

Tanjong A 8 %

Durban Deep & ERPM
leave dividend list

NOT SURPRISINGLY in view of
fee lower gold price and rising
costs South Africa’s struggling
veteran gold mines, Durban
Deep and East Rand Proprietary
Mines have decided not to de-
clare Interim dividends for this
year.

Unless there is a sharp re-
covery in fee bullion price it is
doubtful whether they will pay

any 1982 final dividends. For
1981 Durban Deep paid a total
of 185 cents (95p) and ERPM 50
cents.

Blyvooruitzicht, which runs its
financial year to June 30, is de-
claring a final for the current
year of 90 cents. This fits in wife
the higher expectations and
brings fee year’s total to 190
cents compared wife 260 cents
for 198&81.

R. P. Martin purchase

The Merchant Navy Officers
Pension Fund has purchased 1m
— 10.7 per cent— of fee shares in
money-broker R. P. Martin, gt-a
cost of about £3.35 m.

The stock was sold by leading
German " currency broker
Btexhanm, which retains 52 per
cent of fee equity. Under fee
terms of the merger between
Martin and Bieihanm, which was
completed on October 14 1981

BJerbanm * undertook to sell
within a year approximately lm
shares out of its 63 per cent
stake.;

• Yesterday Mr Peter Wotting,
a director of Martin saad “We
are happy to have fee Merchant
Navy Officers . Pension Fund as
an investor in fee company.”

After the news of fee tran-
saction, the Martin share -price
gained 10p to 345p.

Canadian news round-up

IN HIS latest round-up of the
Canadian mining investment
scene . John Soganich reports
from Toronto that overall net
profits this year for the com-
panies in fee little Long Lac
Gold Mines group are expected
to dip to C$25m-C$30m from
C$37m (£16.5m) last year, accord-
ing to Mr! Peter A. Allen, the
chairman. Production will be
about 190.000 oz gold against
188,000 oz in 1981. albeit at a
lower average price and at a
higher operating cost
In a look at Canada’s copper

producers, investment bouse
Levesque, Beaubien likes fee
longer-term share-price prospects
of Gibraltar Mines. The broker-
age house notes feat .wife copper
prices currently at' 30-40 year
lows in real terms, Gibraltar (a
member of fee Placer Develop-
ment group) will lose money this
year and will only break even in
1983.

However, in fee short term,
copper industry layoffs- and
strikes could bring some firmness
in the metal price

LONDON TRADED OPTIONS

. - Julia 7. Total contracts Calls 1,934 Puls 346

J

uljr

Oc

t

Ja

option

Ex'rcJsa

price

Closing

offer

Vo|.

Ctoslrrg

offer

VOl.

Closing

Offer

bp (e)

300

30

4

42

68

BP (Cl

330

9

83

20

—

32

BP lc>

360

3

5

-

—

BP Ip) .

280

4

1

8

—

—

BP (p)

• 330

16

10

26

—

CU(c)

130

11

14

16-

—

21

cu (e)

140

- B

28

12

—

16

Com. GM (t£

390

e

16

1

27

can*, oid (p;

360

18

—

30

8

40

Cons. GM(p^

390

45

r-

60

1

67

COds. (o)

50

"3b

' 4J

-. •

~ |

Ctlds. (ci

60

26

6

—

—

- 1

Ctlds. (O)

7C

16

1

23

a

Ctlds. (c)

8C

8ia

36

14

es

19 ;

BO

Sh

35

9

15

is ,

Ctlds. (o)

. 100

1

73

4

13

8 1

GEC (ci

90C

72

2

92

—

12S

GEC (p)

960

38

10

57

1

68

GEC (pi

95C

20

10

30

48

Gr*d Met. (o

174

58

9

60

194]

38

6

42

47

Gt*tf Met (e]

200

53

—

59

43

Ord Met (c)

214

IB

139

27

126

31

Gr*d Mot (o!

220

14

10

21

11

25

Gr*d Met (p

194

1

49

4

—

6

Gr*d Met (p]

220

6

44

9

5

14

fCI (a)

300

33

3

46

54

ICI (cl

330

13

14

24

14

36

ICS (0)

360

5

8

25

—

Lend Sec. (e!

260

25

2

36

—

46

260

11

2

23

—

35

Mks ft Sp. (c

160

101s

10

16

9

1012

Mks ft Sp. (ft

180

—

—

5

—

8

Shell icl

390

44

1

54

2

64

Shell (e)

420

22

1

34

19

44

Shell ic>

460

7

—

17

16

26

Shell (p)

360

2

3

5

-

Shell (p)

390

6

e

10

—

IB !

Shell rpt

420

14

—

24

3

30 |

Shell tp)

460

40

—

48

-

se

August

November

Barclays (c)

460

30

—

45

—

67 |

Barclays let

500

B

1

20

—

37 |

Barclays (pi

460

. 14

■ —

22

—

25

Imperial let

60

401s

77

—

1

Imperial 101

70

30*2

201

—

—

80

201*

272

23

-

■ t

imperial (cl

90

121s

144

16ia

—

i

Imperial ici

IDO

6

249

a

27

13 j

Imperial (pi

70

*4

16

—

Imperial (p)

80

li

56

2

—

Imperial (p>

90

1*4

35

6 I

Imperial (p)

100

5

65

8

91&I

300

47

3

60

■ I

Lasmo (el

360

16

10

34

2

45 |

Lasmo (c)

390

a

2

—

—

- 1

P ft O' (c)

lani

4

ID

8

5

12

3601

77

6

93

—

—

RacaKci

390)

52

1

70

82

4 2d

27

10

48

3

62

460

11

47

27

—

40

Racal (p)

420

13

10

27

—

32

RTZ (O)

. 4201

16

15

30

2

37

RTZ (is)

460]

- 6

2

15

—

27

VaalRfs (ol

754

2

8ia

—

—

Vaal Rfs. (e)

45|

414

1

51s

2

71s

Vaal Rii. (p)

46t

354

10

61*

1

7 la

Vaal Rfs. (p)

60 1

. Vis

—

10

1

Ills

Vol.

Equity.

close

|3S4p

II

II

134p

i3&*r

n

S4p

s !

= ‘ri

— lazsp

o | ”

"® * n

4 1 :

— S53p

— 280p

~e i68p
41

— 4E2p

3

February,

4 j466p

- ! 99p”

17

15

329p

5 [149p

- Mp

4 14p

c— Call

P=Put

BP Oil shows £24m loss

HP Oil Group, fee UK and
Eire refining and marketing arm-'
of British Petroleum,, made an
operating loss of- £24m in fee
first three months of. 1982 on a
fell current cost accounting
basis. This compared wife a
loss of £30m in fee first quarter
of 3983. •

Judged against historic costs,
the operating loss before tax
and interest was £38 m compared
wife a profit of £17m in fee first
quarter of 1981. Taking account
of the replacement cost of oil
the operating loss was. £18m com-
pared with a loss of £21m in the
same period last year. ' It is this
result which most realistically
illustrates fee Group's ■ trading
performance, the directors state.

The results reflect a continua-

tion of the difficult trading. con-
ditions experienced in 198L
during which surplus crude
oil supplies and refining capa-
city created intense competition
and exerted great pressure on
margins.

House of Fraser .

Professor Roland Smith, chair-
man - of House of Fraser, fee 4
Harrods stores group, responding,
to reports that he was seeking a
top job in nationalised industry,
said yesterday “my life is with.
House of Fraser. I have not been
approached by a minister er a
management consultant for any
public appointment,

,;.mi
: -t—

... „

J » &»

Year Ended 4th April 1982

Trading Results (TBKstorical Cost)

£nuUibn

EaperrUK

Overseas

Packaging '• :*•

Pub lishing
Newspapers
DecorairreP^|qtS;-

CentralCosts >

(Net of Property Sales)
Inter-Company Sales

• Sales

• 289 :
160
283
501 ■

- ; 254.
.,266-;
. ' 13? :

1982 .
Trading
Profit
(0.9)
23.3
20.1 .
• 30.9
2.1

03
9.0
(3.2)

Sales
‘ 281
125

254
413
220

255
. 124

1981
Trading
Profit 1

(15-1)
17.5
20.7
25.9 : ,
- 12.1
(14.1)
94 •'
(1-6).

(18?) . ■ •

1.699 ‘SI.6

(192)

1,480 55.0-

'• Sales for the 53 weeks period (1-981:. 52 weeks) increased by no -

.. more than the approximate rate oF inflation; reflecting difficult trading
conditions in a year of continued economic recession. Nevertheless,
trading profit increased from £5 5m to £82m with improved results in ..
■many sectors together with reduced losses m UK paper-making and
.. . decorative products. In addition, no significant losses were caused by
industrial disputes compared with an estimated loss of £12m reported
: in.' 198 rasa result df action taken by printers and journalists.

' The programme of rationalisation initiated in previous years

- pontinued. Exceptional costs and provisions charged against trading

- profit for the- year totalled £1 9m (19Slr £23m), UK rationalisation
costs {mounted to £20m of which £4m related to paper, £2ra to
packaging, £8ra to decorative products and £6m to printing offset by a

- ^ - Betgairr ofilin &om disposal of subsidiaries and associated companies.

v ■ Papermaking in the UK recovered to a small profit before
rationalisation, costs. The Quebec Mill continued to perform well in a -
strong newsprint market aid its reported results also gained from the '
wealfeess of sterling. .

Packaging operations in the .UK arid Holland maintained profits
and market shares in highly competitive markets. •

! • - The Company continued to' expand its profitable publishing and

related business both in fee UK arid :USA. Although, advertising and ..
circulation markets were weak, the. combination of higher revenue with. -
fee absence of losses from industrial Action in fee UK resulted in .
increased profits despite the cost, of providing for the redundancy
programme afQdharas; ■ . *

: iNSwspapers had much : reduced profits as a result of severely '

- competitive- market conditions and higher newsprint costs caused by.

- ' 'the fafl brsterlifig agaxnst fee US dohab. - ■

: ". in Decorative 1 Products, Urowri Paints, Poiycell arid the Canadian
businesses had improved -result?- 1 UK. and US wallcoverings -and UK
” textiles lost £1 2 m (1981 : lop ^14m)ifter charing £8m (1981 : £1 Un)

■ for rationalisation costs includmg .provision -lor closure of a further

? waffcoveringsanilL - ■■■' ' • ' j'- -- . .

■- - Buflding^roducts again di^welLfrom UK home arid export.trade, .
but the Sphimc ceramic business in Holland suffered from fee severe

• oftheBuadingmdBstry iriEarope. : -

Ciurent CostR«uIts

■ . /CCA- Tmding Profit before Exceptional Items mcreased from -
" £37m to £5 Ini; CCA Proflt/attributable to ^uireholders was £9m

(1981:' Nil), giving CGA earning&. .per prdinajy Share of S.lp after
“ •provf^ng for' Exceptional Advanced Corporation Tax.

\ - writteri-off. . .-)■ -V -“J ' ... .. . - - . •

Taxation

Wife high, capital allowances, and stock relief, no corporation tax
is payable in the UK. £7m Advanced Corporation Tax has been charged
against UK profit as not reco verable in one year.

Brought-forward tax losses are stiff being utilised in the USA
and overseas taxation. has been provided at an. average. rate .of 27%
Q.981: 30%).

The effective rate of tax on consolidated pre-tax profit was 25%
compared-Wife 22% last year.

Investment

Capital; expenditure totalled £68m (1981: £64m). compared witli
CCA depredation of £57nv (1981: £51ni). The acquisition of new
badnesses cost £16m, including £12m for The perrow’s Organisation,
pnblishers of local ne wspapers, wlricJi was financed mainly by the issue
oF4.7m Ordinary Shares of fee Company.

The acquisitipn of- two additional local newspaper groups,
Benham Newspapers and St Regis Newspapers, for a total consideration
of approximately £I0m, has bee& agreed subject to consent under fee
Fair Trading Act *

Finance

CONSOLIDATED BALANCE SHEET (unaudited)

^million

Funds Invested

_ . . ■ Siareholdcrs’ Funds

Outride Shareholders 7 Interests
Loan Capital

Historical Cost Total ' .

: CCA Adjustments

Current Cost Total

Funds Employed

Properties and Rant
* Investments
Goodwill 1
Working Capital
Net Cash Deposits

Historical Cost Total

CCA Adjustments v

Current Cost Total

-4.4.S2- 293.81

569
. •. 4

.210

783

151

934

391
- *19
76
343
. • 54

783

151

■934

49S

5

186

689

133

•S22

• . • loan Capital was increase^ in, February 1982 by the issue of
£25ra Sterling Eurobonds and, at fee cod of fee year, amounted to
£210m (1981: £l86m). Net cash deposits increased by £9m and Net
Debt amounted to £156in (1981: £l41mj; £9m of the increase derived
.from exchange differences.

, The Debt/Equity ratio at fee end of the year was 323 . unchanged
from 1981. . ■ 1 . ■ ' . "

Dividends .......

, The Board has decided to recommend- a.final dividend of 10p
per share. Together wife the interim dividend" of 4p already paid,
fee proposed final dividend will make a total of- 14p for the year
(1981: 13p). ’

Subject to approvad at the Attunal General Meeting^ which will be
held on 5 August *1982,- tire final *drradend wdf be paid on 17 August
1982 to shareholder on fee renter ori ^ Jidy 1982.

PRELIMINARY CONSOLIDATED (UNAUDITED) PROFIT STATEMENT J

1 for the 53 weeks to 4 April 1 982

Historical Cost

Current Cost

Year Ended

Year Ended

4.4.82

29^.81

4.4.82

293.81 I

Safes

£ mill ion

£ million 1

United Kiqgdom and Exports i.. M

J283.5

1139.7

. 12833

1139.7

Overseas

415 JO

34D.4

415.0

340.4

' • '

169&5

1480.1

169S.S

1480.2

Trading Profit before Exceptional Hems

10U

77.6

51.3

36.6

Exceptional Hera - '

(195)

(22.6)

(22.0)

(26.3)

Share of Profits of Associated Companies

25

3.1

1.6

2.4

Operating Profit/(Loss)

...

United Kingdom -----

44.4 ..

29.9

5.6

(.4.6)

Overseas..— — - •

39.7

- 28.2

253

17.3

.84.1,;

.•'■58.1

30.9

12.7

Gearing Adjustment

. 7 -

8.2

6.6

Interest -. - ...... • ,

il2j5 >

(7.7)

(123).

- (7.7)

Profit before Taxation —

71j6

: 50.4

26.6

11.6

Taxation

Uni led Kinedom .

(6.1)

(l.D)

(6.1)

(1.0)

Oversea* - - _ - -

C1L5)-

fl0.3)

0 13)

(10.3)

(17.6) ..

(113)

07.6)

013)

Profit after Taxation

54.0

39.1

9.0

03

Outside Shareholders’ Interests...^

0.2 :

(0.8)

0.1

(0.8) .

Profit/(Loss) before Extraordinary Items

' 54.1;,;

383

9.1

(0.5)

Extraordinary Items — ' -

J-

(15.4)

Profit/(Loss) attributable to Shareholders

after Extraordfnaiy Items ...... —

54,1

22.9

9.1

(0.5)

Dhidends paid and proposed

. Preference :

(0.2)

(0.2)

(0.2)

(0.2)

Ordinary 1982 14p per share.,

(16-3)

(iwy -

’.(163)

(14.7)

(1981: 13p)

Profit/(Loss) Retained ......... — .

.37.6 .

. 8.0

(7.4)

05.4) ..

EamingS per Ordinary Share . : ' ,

.4T3r -

.;.34.ip.

S.lp

(0-6)p

■

- REED INTERNATIONAL P.TUC.

REED HOUSE, S3 PXCCADH.LY, LONDON VIA 1EJ

Financial Times Tuesday June 8 1982 , ..

Owing to a shortfall in yesterday’s circulation, this advertisement is being

ARGYLL FOOTS PLC

(Incorporated inE7igLcmd zmder the €kfmpa2ues^d^S23JNo. 358043)

95,000^000 ordinary shares of IQp each at a price of between a minimum of 85p per share and

a maximtim of lOOp per share, payable in full on application.

to the

t teir

ui

paragraph 1 of Appendix V.

Summary informatioii

fg *T«rfgpri fonntjawd sbrtriTd Tiarpgt? ttt lYirjrmrfifm

with, the full text of the Gfferfor Sale.

Business

^enewAipyngraT^\^chcoinbni^thfi former Argyll groi^iandiie Allied
group, is engaged principally in food retailing. It is one cf the largest food retail
groups in fhe united Kingdom trades nrefer* fTio prrnripnl -nampg of Presto,

T.ip faiTi^ T ACnri ninH fyy rinn

Offer for Sale

TP I FT3 i n-j i- ii!7?l ^ "

alapriceofbetweenamininumi ofS5p per share andamaximuintiflOOp per share.

All shaxeswillbe soldat the same strikirigprioe.'nifi strikmgprice,which.wfil
not be less than 85p per share, -will not necessarily be the highest price at -whidi

CTTffiriftrif: app lipflh'nriH arftrpf^ph7pH in cover all thftTifw ordinary rfiHrashfmtg snM,
Pm fnrma finanrifll mfn rmfltin n

Thppra fnrnw rptmlfatanri ■npfcfa-ngihTaaRKPfg 1 KnBpJnw«*nniTirTmTgiJia»ni«Bft»>?

accounts of Argyll and Allied forthe year to end March, 1982 after making certain
adjustments described in paragraph. 5 of Appendix TTT, are set out below: Far

ahUTB are indicated. Atq j rfrilriTig jirimnf Iflflp^fitearw p gniiiigB pgriihwmflm

pleading to lower interest costs. ■

Ordinary shares Tn isana and aTig i^ -frnm fTw» <ymvnrfThla

prpfpT «nrp. shaBBB . 139m

Turnover ,351,077m ,

Btrilangpnce stnJdngpiice

Marfa^canTfalisatum..-. - — £Uftn dStSSta.

Profit before t axation , indndi ugp co fit of £2frman
saleoftradeprope rties — ....

pr ofit afteriavalinffijiwrTndTTifrpTrfHirtf fSfinum

sale cftrade properties . ... — —

‘Earnings per share —

P» I'M 1»=> iTB yj ■■■■"

IL8p per share -

after- Tmfcinnftl -fiiTI fonr, fnclnfHng alvTve property

profit— &9p per share

JPbcb egmingsiatios—

after ado aT . a ■■■»■— wwm——wh—<—m

afiernotionalfonfrrr

£S73m £38Axo.

Slttm £37Am.

• vcp r;in(i *

after actual tax— .
after notional fidl 1

1 i'L -1 • 1 K *1 t !V Jl F

Gross dividend yield, onhasis offbrecasi; dividend of not

less than 3.75pfor the 5^ar to endM aro h,I 983 . . 63% SA%

, Net tangible assets, exduding property smplns of £35-9m £55m' £J69m

Net tangible assets per share, exdudiug property surplus

ofllp per share . 7 40p 60p

*EnS table wbnnld 'he read in rnrgnrKrlanri- ' wrtih thft-nnte ft gp6-.nnt- vn pa ra g raph R of
Appendix HE.

Introduction

The new" Argyll group , which combines the former Argyll group and tbs - Allied
grom^Ls engaged prindpallyin food retailn^ It is one of the laige^fbod retail groups in
the United Kingdom, with combined sales ofmore titan £lbfllion and acorrent sharaof
fhft-nnijfmaT p^agedg7TicgtyinarketinggcesBof5percEnfcwifiistrQngTejpanal market
shares in Scotland and TJyne Tfees. In addition, it has other food distribution and
manufacturing interests.

The merger of &e fbnnerArgyngroqp andfhe Alliedg i o up was amjm n ic ed'anlltii

"May, 3982, when Argyll agreed to acquire, suited; to certain conditipna, the whole of the
share capital of Allied from Allied ( Holdin gs), a subsid i ary of Generals Ocddentalfijar a.
consideration of approcdmatebr £101 million. Tha a« pi«ii;iim tmtw rpma^nK cu nditaonal
solely on liatingbernggrantedbythe Council ofThe Stock Exchange forthe new ordinary
ghares.lt i s€g^^Bd^tttosTOdb egrantedqn9thJ toa^^^s^robo ^ rto^ot^m fc

jBth .T tm«» ) i Q S^- The Qfferfar SafehasbeenpEEpmedcmth'eas&nznptianthatthis condition
has been. fnlfiTJed and, where rdevant, that ttieacqaigrtion has been completed.

The board of Generate Ocddentale has stated that it is seQingits interest in Allied

in order to mnQPTT fcratftfm thggypHtisiurLnf gdmitiis in North Afngrirajnp mo birh if; Tima
plriagdy embarbed- .

The consideration of approximately £101 TnTTTirm for Allied is Twing wfeRid

of Argyll These new ordinary shar es are being sold by Allied (Holdings) to Swmngl
lEdontagu^yriii ch is now offeringtTi em finsalebyteodertomepnblicatapriceofbetweena

TTmrimir m nfSap pw sham ana, a maximu m oflOOp per share. T'hft Qffwf jir S»fe iB fltng

raising gross caai proceeds ofbetwren£ST million aiS £95 millionand the haTance of the
consideration, of be tween. £20 millionand £6 mfllionis being sefctledmcash.by Argyll-
At the request of the directors of Argyll, the Conned of The Stock 'FbreTmngPi
suspended listing of the ordinary and co nvertib le prde r ence sh a r es cf Argyll onlOthiMay,
3SS2,pendiog the announcement the following day that Argyll had agreed to acquire the
whole of the share capital of Allied-In view of foe substantial nature of the aegensitjonof

The Stock Exchan ge andrSnbj^^meto yrr^tn mTTTpWn^p p fAPiB^

deaHn^amgyperteAtootamnenpecgiTHb .Tima^ORg-

History and development

& Sons (Manchester) Limited to acquire a meat
shares were listed on The Stock Exchange in IS
company was changed to Argyll Foods Limited.

In February, 1979, Gulliver Foods, an isw

GnEiver, Mr^M-A- femfcarid Mr- D-fi-fi-TCAafarjnwwl jbe hoaii d nf-i

business founded in 1919.Ls
h July, 3SS0 the name of the

jyiLMnJ.G.
L at that time

Au&arised Share Capital IssBedandimalring

papioil-fnTly jHpii.

£17,000,000 Ordmaiy shares oflDpeadi . . £18,710,469

8percentconvertiHeredeemabIe

4,468,048 rrrmnlafnw p mferPinmBbfli^ n f£l<>iylt 3-037,763

£21-500.000 - £14,748232

Indebtedness —

DefsilsoffhemddTtednessofthe new Argyll groc^,whxh,at22rB£May,1982,
u mi in nte d to a total nf AiS-9 ■mTlKcm, gTrTTTdiTig -Mny tgrrn ]pgps to hi* fam suhse-
qnppttft thisdfltfi i-ncnnnerfcinn'WTfht)ieaajni.siti onnfA11ipd, grpig!f:nTThTn pgragr apb
P-pf Ap praidry V dianlf¥M>din fliatpflm gr apb 1 «T>d gfppTfc'h nm fnte»- grnnp
Tnrfph t pJnftss and WBWtrtpRRTin fflui^iH M yiiitliflfhnTiflr

g3S

other material contingent liabilities.

Directors

. Tgmgg RoroM fi nUro wr
Chairman ■

49 Font Stoat,! /mdon S.WX

Timetable

Last data!

jflQm

17tkJnna,1382

. afl0pan.a0fli Jills ilfltB

Definigqns

TtofcUoal ngpda^aMefltf fa p sareTg B lSa gdsdaaiiarofe
“AitsiF’ Argyll 'Foods PLC

•AHikT ATHp d Firippl w-rs T .fmifcnd

TbnnarAis^lgnxqP ArsdlaiuitssiibssiiazlesnndrtoSieaaimBSicBiafAISeS

“nswArgyff^ttip” Ar^linidTfa.n hBT«ftm^MnmT. g *te>anjmiitim,nrATlifla

'Affiedgrornf ATnfrf and ifag nfasi di Hne s^ ,

"ADiwi ATTiwI KnpiKwg(H/'liliiiw)T.M(^

TSanradJtoriagtf’ S a mnri MgniaCT&Co Ximiteti

^Goffiwrihods^ , QoIIberRwdsXfmited

"OriaF Orifll Foods Limited

"CordanSar Cwdoa Eltsa Freezer-Tbod CatfcrsBlimBEd.

*JGA* Janus Gollhrer Associates Linrited

"emgnary dic tra ." ordinaiy shares of lOp each of AisyH_

*p«»^ »ilji i 4 r y t l i ii i w y OS wiTlidn nr ifaiir y iiliinwi lMf^pf^—^ —]wi* nwJiTi»«lj(ni ftgfiu

w m raw pjmrrm f Q pa t M tataB di wBB drih B jB fl rea jBreflBMdwEiiB B

abamT
*O fla: fir S aid*
"wttuant^* <

fteO0erfirSa]ebytena0rrfnewcr®imiydfflrBs^deanibBimtodocnnMit_

WH natrta tosobscrib afbrc gd inaiysharBg,a s« jiiiu»wrihwlm J BB |ga g! i h1 o CAl![ i Rnfli

■ thaa^prkefbrthe nor cadinniy shares

industry; joined the board of Argyll,

Daring 1979 and 1980 the activities of Argyll were s u bst anfi agy increased,
principally throngh a number of acquisitions inr-lndi-ng in particular the Coxdan Blext
freezer centre business- In February, 1981, Argyll pnnfoased Oriel fimuBCACarporaiion
for £19.5 million in cash, thereby transforming the scale and range of Argyll's operations

g« S

Parol EnedericfcBnrditt
Willows, Windsor Read, Datchet^
aearSlongb^ericRhire.

Charles Martin Edwards

StAnifreWjpearPrestbmy, Cheehira.

B ean ICwifTifMr T MtuHn ^
Nobold House,near Shrewsbrngj

HmpahTT R-

Secretary and registered office
Colin Deverell Smith, FCA,

St Christopher House,

217 Wellington Road South.
Stodqxnrt^ Cheshire S ^2 6QW.

SoEdtorstoArgyll
Ashurst,Morris,Criq» & Ca,
Broadgate House,

7 Mdon Street,
Tjmdrm T C^T T HIl, .

Solicitors to the Offer for Sale
Herbert Smith &; Co,

Watling House,

35/37 Cannon Streep
London. EC4M5SD.

W SB Ig gs Ma

i y Ti.

r »* i T»y> ; V j f> *7*

MatfliewAKstair Grant •

Q todreahag elaWae fa i ^ ' \ ^
MamhaBtec

Hugh. MartinTlowdenEoliqcfa
The Boxes, Oddiam Lane,
Hatriiford, CbjAam, Surrey. _ _

Boy Edward SemackjFCA -

Na«t Hydt ^lTat fTBJdjTTpr f^WrdsIfTTy-^

Parod Gordon. CcanyaWeheteP: ;
SoutiiWmd^Th&Connxtdi], “ ‘ ' -
Berkhamste^BerifonfeTixpai... .

Brokers •

Panmure Gordon &C ol,
9Moorfields Hi^iwalk,
London EC2Y9DS.

PxiorapaXBahkecs

Pbolriy^LmdfJiiECSPSBXi

SamnelMaiten&CoJflfflc

114 Old Broadwxeet^
LondonEC2P2BEY

BaidaysBarikHLC,

54 Lombard Street,

Tfmdfm'Rf^rpaATT- T

Y’.iti (II i k i * t » > > i >: r u 4« v -h1

~:i« i nr J ai’.f.'; i'i»;Fj iF.'H y I
r^yiimbwn

of Oriel, when Argyll acquired it m February, 1981, was tinH y ^af%Ag te'b'h'gh<>fl

during^Tie period ofl^ previous a3soc iatiTO .T^ih the business and this greatiy -^mTTtefp^
the integration, of Oriel wifliArgylLATgylEg-Brtan Mfjj ^tiaBrww g ^TTTpa^ tw^^TO^an^
Lo-Cost and Cordcai Bleu.

fA rrrrr; ji ? . : ,v . . srTTrrrri j. 1 . ^ v. . r-j - l- 1 MfrH?; mjsvi

groeny businesses indudiDgLiptons Iimited,T5ie Ekane and Colonial Stores Limited and
Maypme Dairy Co. Limit ed. By 1959, Allied had absorbed farther grocer y companies
including Gslbroith Stores Limited and R. & J.T kmp I&hm Limited. In. 3972, Allied was
axginreaby Allied (Holdings), then called Caveriham limited. Moores Stores , winch had
beemoinfiv owned by Allied (H oldings) and The Snnihland Cmpnr ^tjfm Tn/* gi-nno 1071^
lasts been managed within" Allied since 1976, al tho u gh only- purchased from ATItrtI
1980. The Caterosunamtarketdivigm was gcqnfnw^-firrrnll iJiBnhaTnKTn
198(LAll£edri nw < nmpris e s faBO divimanSyPresto and tapfams.

location of v? ^

Presto stores £J

UV.[

Business

Thejpri
by the table b

Setad food distribution

figsto— IaigMBq>enaaitafaai»LBqBBteaa

Tantaxr

£m

Cordon Blea-freezearcenfzes

WhafeBBifa fco&diBtfhBfifln

EoodmarxufodxaiDg

EeiaflfcKjdcBsfcribiiHon.

S6» 90%

S 6*

^ 4%

-L077 P 300%

c o m brnat i o ii with, a wide range of groceries at discount pri™*?.

lprodnce,in

canveraon of the larger Moores stores. Thereafter. whiTp -marntefi
share in Scotland and the North, the develo pment of Presto was

American ideas m the d^ gn , layout and equ imnenfc of «wwpm m »* «j« w

departmenteandin-steebakeEifis) togeiherwithcompetitivelynricedc^
and lowpri ced ow n labe l and g eneris grocery products. ThePc^oFbod
creates an attractive shopping environment and farther Presto store
Dfting u i i jj g mftnfed inflic c mx fliityfisij $ .

coKryenuGsas i

-Presto stores have beei ope
turnover has increased from

iBchjdfog otmversijons

flCIHaw fo af -IIVTO

year to ad

atitled

in

Ri'aets

CA

Grvcr.Lc^

ibrdihire.

Webster

ire.

r&W,

:rcs~
*i

'StekaJS*

-a*s°5S«?

:-^ K 5S%

r.f • -'■ ■. ', r/c^p

JDLCJ^

^^iaa^iai Twaes Tuesday June .5 1982

25

riownc'Con/fiiKetii

':: Supermarkets 1 ..' , • .

Grade eas&fcroeBeds of Qfferibr Sale

raA j gmt t OlM mwVHutinn
~3&tmated total censirieratian before expense*

SSp

(madman
sb iteflfjxics)

'. ”. . ■ £».

81

20

101

SOff

£m

85

16

101

S5p 200p

. [BlSBIRGRn
... strikingprux)

Sa. ' £m '
90 ■ 35

11 • 6

101 101

Liptons is the trading name for the.588 smaller stores, averaging^SOO square feet
... lesarea; trading in England andWaJes. A previousmulti tude of fasdas was rational-
ised into Uptons m the early 1970s. These stores have been progressively refined with

— v "— J — J J; ’ 1 --- - J -1 funds to refit and modernise

ig .the introduction of. fresh

the remainder, thereby: improving quality and .
jjrod oee, z^^frtot^v^etables aqd wines and spirits.

The LJptona niiw.jre strbngest in the Ffortii East, Lancashire, Yorkshire and
.^London^and is alsa vrell^reseci^iathe holiday ireas -of North Wales, Devon and

n ' 11 tL. C<..^U rti 'J'T.*'. ' J J i>i- .T Ti- 1. ■ .o f* .T

- The above table thus indicates, that the cash element .of the consideration, to her :
financed by new ternlTo&ns, reducesiis the price at whkh'the new ordmarysh ares are'
sold ihcieases. Iffddchticraitotere^ on 'the consideration, estimated to be £2.5 million, is
payabfe in respect ofthe period from 16th April, 39S2 up to the date of pompletion. Argyll ‘

■ Debenfaams department stores.

, \ Templeton is the trading name for the larger Scottish supermarkets within the
..division, comprising 63 stores with an average sales area of 4,500 square feet per store.

Templeton has a reputation for fresh foods and quality and is particularly strong in the
. West of Scotland and the Ayrshire coast The use of the traditional Ifempleton name with
•' local ma nagement 'main tains the Scottish irfpntity ofthofr^^rftgi-.

■ Galbraith yfhename used for thel03 smaller Scottish convenience stores, average

... nag 1^00 square feet per store. The stores are mainly in estate hi gh street locations in

and around Glasgow.

limited range discount sttass

The Lo-Cost division operates 157 discount supermarkets having a total sal es area
of 541,000 square feet undan average sales area per store, of some 3,400 square feet.

■ Turnover in t he year to end March, 1982 was £73 nuUTon and, with, the benefit of the
recent Prjccrite stores acquisition, is currently at an annual Tate of around £100 million.

Ixj-Costaraiuaihly located in the West Midlands,Wales and North West England.

lA-PAqf. offers r! iftPfmiPfv fTvMiT^'d MAlimrArAAwfrtl Vrilt Vintnwrf nf nnrnUn^inf*

a. range of branded products, including quality fresh foods, at competitive prices in con-
venience small town and suburban locations. The policy of concentration on branded
products has lead to the establishment of a strong trading relationship between this
division and manufacturers.

Retail food distribution and administration

The Presto and Liptons divisions are serviced from9distrihutkm depots with a total
wareho use area of 6S8,00Q square feet and 4 fresh produce depots, located throughoutthe
country. Some 2,800 grocery lines, including own lahelproducts,are distributed by a fleet
of 213 ve hic l e s. The Lo-Cost division is serviced from S distribution depots, with a total
warehouse area pfl49,Q00 square feet,located at QueensferryinNorth Wales, Shrewsbury
and Heathfield in Devon. Distribution of some 1,300 grocery lines is by Lo-Cost’s fleet of
42vehides.

. Ad mini stration for the Presto and Liptons divisions is Concentrated in a modem
office of 41,000 square feet in South Shields, employing some 500 staff. Remote computer
facilities are directly linked to theraain computer installation: ih the modem head office
of 58,000 square feet at Hayes. Buyingis directed centrally from Hayes with specialist
divisions for fresh meat; fresh produce, in-store' bakeries and fresh fish. The supporting
departments of property and development; finance^ marketing and personnel are also
located at Hayes. Administration, an d buying for the Lo-Cosfc division is cenized in an
office of 10,000 square feetat Queensfeny, North Wales. •
freezer centres

November, 1979, 31 stores acquired with Dalgety frozen Fbods in February, 1930,36 of
the 66.FreezerFare stores acquired in October, I960 and 5 Bonimart stores acquired in
~Na$fctobsrp9f©-' Cdrifon. Bleu basalsd opened 13 storesaverthe last twelvemonths. - '

AUiGptdbh EJecofreezer cdnires carry. a unifonn range of products, with common .
merchandising and pricing policies. In addition, to selling approximately 600 linns of
frozen foods. Cordon. Bleu sells a limited range of groceries,fre^ers and microwave ovens.

- - — The. s tores a r e pr i n ripadly-servicect from 2 add store depots localedat Salford, near
Mancheste r and ftfiv rainakft in Kf»nt.Th tvfcpari nffirfe nf r Virdnrt pipn ig Irwatori in modem

Cashfuj^csdry ,'rr:

having- a total safes areaof 578.000 square feet, mid is a member of the Keencost buying
and markettog group. Mojo originally operated principally as a supplier to the retail
grocery iradeb trth&S .extended its market andisnow involve din catering supplies,wines
> and. confectioner; grocery provisions and fresh meat.-

’ TTift Tnoinvitwnfite: in rlertoAri Inrat -market?? •- . * ■• •

Frqzeii.fpods - " -1'.. .... - ■ '■ • • - '

'' 'Snowkmg Frozen Foods isa specialist wholesale distributor of frozen foods,

• of Eigl^^andthe Midlan^^^wkihg offeis arange ofsome 3,750 frraenfeod

produds^h

Food roSnafhcturihg

. r "^Aigyff.Qiudftyl r

coat«fFlscicts under'tiie "Bronte? ^arkshize.Biscu£&’ and Tinruss” labels. It also

■ Sudei: tfcie:^R^^^abeL Argyll Qmdity.Fqp3s.iS located in-premises at

Haworth in york^iire } Tnircf in Cornwall and Livin^torrin West Lothian. .

. . .. . . ^Goltfprqwn Foodsblends and packs toabothnnderiis own ^Manhmna’’regional

rErandlabel and under private labels and almpacks coflee. Gold CrownFoods is loc^edin
central LiverpooL ■■■..•. -i ' . , r •

sold to !.thsm£n febd mmiijfecturers in S^infred Fingdom. It is located hi central
laveappoL . ^ * — ■' .*;••' • •• ••

.ManagemeoJ and employees . , .

Directors ' ' *■

Mr. Gnlliven who is aged 51, is chairman of Argyll andhasbeena director

g7nfv> Februaiy, 1979. Rum 1965 to 1972 he was chief executive andfiom 1967 also chair-

adiz g^^of ^^rent om o^^A ssgaated

was appointed ojmcutvve’ vice .president of Loblaws, an. associated company, the second
largest supermarket chain in Canada. In October; 3972, he left Bine Fare to develop his
• own interns aud io . January, 3973acquireda Bufetanti^sharehoWing m

partof his time; in addition, he is chairman of Alp ineHol dings PLC and Amalgamated
Distilled PrednctsPLC^which aresepand^pubEeSgte d o omp a nies . He isalso di aj rman of
JGA.'andCitdliver Foods. •'

Mn D. F..Burditt, who is aged 52, has been a director of Argyll since June, 1980.
Following a period 'of time with Procter & Gamble, he was employed by Beechams from
ifl7> Ta Hy rlv as rrTgriag 7rig , d^ rpr t :m * n f^ fle ^ 1 ” m International Consumer Products

pi vision- Froml977to3979 he was groopmanagingdirector of Thomas Borthwick & Sons
Limited^ He irresponsible for Argyll’s food mamrfectming division. He is alss a director
’ of Gulliver Foods. - '

Mr. C.FL Ed wards, who la agedSS^hasheenaffirecfarrfAig^oiueSepteniibei;
- ’ iS^HefeaiMn-eacecative director; . . 'i;.' ‘

fellow^ by Arg^of Morgan Edwards Limited. He is a nonexecutive

directa n ‘ v ' • '

Mr. M. A. Grant, who is aged 45,has been a director of Argyll since February, 3979.

.in«i 4-^ i (V7»> Vo •mfxa nar+i f?nTlT«oT-’a trinnatfemprif. HtFi'nBFarel'lBtteriv

CAO.UUrc uutwwi

Holdings PLC, Amalgamate — — .

Mr G.S.Inwrie,who is age!d48,hasbMnadirector of Argyll since Se^mber,19SL .
. ^ FHm'1959 to 1973 he was a seiuor executive of an associated compa ny of Fine Fare, for

bSmJ&.of the.^oagemeid: ofOrieI,latteriy aShdirectmiHe is

responsiHa for Lo-Cost StoresandMo^. . -:. . __ _

*v T 1 ivfr H.AL Plowden Roberts, who is aged 49, was appointed a director of Argyll in
r ^'.Jiroe;i9g2;BbHowuig aperiod of severaly^ars asah executive :anddirectorof^tailand
:■ -Wholesale meat company, he was appmntai to Allied in 1967 to establishthe fresh meat
* ^operation as part of the supezmarket .devdbpmeift programme. Hewined the board of
.» vti- j 1071 VwTimi wnnar lr^ Tig thrpctor in 1972 and operations

%'director in 197ffHe became managing director an d chief execu t ive of ^Alhed.m39TO a anA
: i^jairmanih.lSS0.. y ••

Mr. R.E. Sem3ric, who is aged-42, hasbeen a director of AxgyU smce July, 3979.

-flypfljiar miusLza *o j. w;

of JGA and Gulliver Foods.

Me. D. G. C. Webster; who isacw ui,*u» ubbui» »..»— ' -* rt»r " — — ~~ — ~ j i

‘1979 Hawas direcfcor of corporate finance of Oriel from 1973 to 1977. As an executive
• : . director he is' responsible for group corporate finance. He is also a dirator.of Alpine

'* HnT^np PI/l f AE?aIpjmatedDif^lW£roductoPlX 3 JGAaiidGuUiverFood8., •'

” ■* new Argyll group has .the fcdlowing employees, ef whom anne 31^00 are

a part-time basis:; ;i .: *

* > " ‘&aifi)od distribution:

'tj»rpgeupgnBarteteMdiHipttatorB8 * .

'• * +■,' , •; ‘ Sroail,yipermarl tft3

f jm^ pgTaiusedfaowlcwPPes'

: i . •• .^Fosesewfiotrcs • •

“* Afiarcjiunse and cUsmOQnm •; r .

PbodmanufeictnrtniT '

Central ai y<T^'nnaififfmiiT isuanfltt — ..

qwal.. . " ; ~

_ . •; 02300
• - 10 ^ 00 '
'• - ■ • 1,500

• SOD
300
700

• ■ * 700

• - 2200
30^00

April, 1SS2; Further details of. the financial terms of the acquisition are given in
Appendix HL.

. The term.loanB to finance the cash elementof the consideration and interest and
/expenses are being provided by Samuel Montagu and Midland Bank pic. Details of these
loansare given in paragraph 6 (xivj of Appendix V.

Tenn&of the Offer for Sale

' ' ? The 95 million new ordinary shares are bring offered for sale by Samuel Montagu

by means' of a tender offer whereby applicants choose a price of between a minimum of
S5p per share and a maximum of lOOp per share atrwhich they wish to apply.

When the application list for the new ordinary shares has been closed, the applica-
tions will be considered with a view to providing an appropriate distribution of shares
among large and small investors and to establishing amsurket in' the new ordinary shares .

. for which a reasonable spread of shareholdings is requirecLTbe striking price will then be
; determined by gaqmel Montagu and all the shares- will be sold at the one strik ing price.

*■ Thestrikingprice, which will be not less than 85p per share, will not necessarily be the
highest jeke at which sufficient applications (including applications at higher prices) '
. are received ta co ver all the new ordinary shares being sold.

Applicants tenderingata prire below the striking price will recrive no all DCfltion of
■ shares and will have their dieques returned to them. If any applications at or above the
striking priceare accepted in part only, applicants will haveany surplus ameuntfollovring
allocation returned to them.

The new ordinary shares will rank pari passu with the existing ordinary shares
currently in issue, save that they will not rank for the proposed scrip issue of warrants
described in paragraph 1 of Appendix V, nor for a dividend of ff25p per share, which was
declared on 10th Mav, 1982,to be paid on 27 th August, 1982; this dividend will bepaid as a
second interim dividend in lieu of a finaldividend in respect ofthefifly two week period ■

-ended 27th Match, 1982. -

; The new ordinary shares will rank for the interim dividend proposed to be paid in
November, 1982 in respect .of the year to March, 1983, which is forecast to be X25p per
shared as referred to below.

Details of how to apply for the new ordinary shares now being offered for sale are
set out in "Procedure for Application? at the end of tins document
Preferential applicatiQns

. Of the 95,000,000 new ordinary shares being offered for. sale, * maximum of
23,804,724 new ordinary shares, representing approximately 23 per emit, of the shares
Being sold, is being made available for preferential applications, on the terms described
above, by hoi ders of existing ordinary au d convertible preference shares of. Argyll, on the
‘ register ofzoembers ofArgyhatthe close of business on 1st June, 19 82.Huch. shareholders
are entitled to make preferential applications on the following bases:

Ordinary shareholders one new ordinary share for every two existing

ordinary shares then held;

145 new ordinary shares for ev e ry 200 convertible
preference shares then held and so in-proportion for ;
holdings of any other amount (being an offering pro -
rata to the conversion rights attached to the convert*
ible preference shares).

CtordonHIetz— freezer centres

Cordon Bleu, with turnover m the year to end March, 1982 of £49 m3Kon,3iaa
opened 4. new stores since April, 1982, o£ which 3 wereTonversions of Fricerite stores, to
make'a current'total ofl37 fte^eroentrea Cordon Bleu plans to open atotal of 20 freezer
centres dnringthe year to Manfo, 2983, including 5 Priceriie^ comeasiaas.

Tt is considered that significant opportunities will exist for the accelerated
.expansion of Cordon Bleu through the selective conversion ofa number of existing stares
within the tiptops divh’ian.into.Gordfln Bleu fi»e»rcentresin the course of the next two
years andufeo to extend Cordon Bleuk penetration into the North East and Scotland,
-where it ia^hot at present ¥gsrisented:“- ’

The fiiiner Argylt grouph food wbolraaling and mainffadirrinE activities will
' represent some 10 per cent of the total turnover of the new Argyll group. These activities
are supplementary to the mainstream retail operation.

The directors consider that the capital funds required for developing new stores
and for the modernisation and conversion of existing stores can be generated from current
resources, from the cash. ftoRof the ^u^ness.andfromthei ffi^osal of surplus prepatiea,
Summary ‘ -

"** ' The directors of Ai^ylVare confident of the trading prospects for the new Argyll

:grtnjp.-E£Gcien£ food distilbntfoni ^neh involves the buying, physical distribution,
marketing, administration and control of very substantial -volumes of food products, is a
business which offers significant benefits of scale. Accordingly, the directors of Argyll
believe that- the major ooporhrailies for profit improvement 'and increased efficiencies
resulting from such scalebenefits are available both within the Allied gronp,to ensure its
continued development and expansion as a strong and efficient national grocery re t ailer^
.and also from the combination of the complementary activities ofArgyll and Allied.

-Priority will be given to seeking to obtain through such profit improvement and
efficiency programmes -an increased net operating margin for each of the four retail
. operating divisions of the new Argyll group in line with best food industry sector per-
formance and standards.

- T — ■ APPENDIX I

ACCOUNTANTS* HEPORTDNTHE FORMER ARGYLL GROUP

Th» following te a copy of a ir-pott oa ihp former Argyll group TPoeiTed fown AiOng Awfaffi m.
£GL.Cliari8mtArouinitsiriJC — ■

The Direct ac*, , BsTikHouse,

Argyll i'oods FLC, * . 9 CbarfotteSreefc

nteDirecfas^

SaaiDelMnDtegaft Oa.Xazdted.

AthJnQp,3982

Convertible preference
shareholders

A maxtomm of 3,000,000 new ordinary shares is being reserved for preferential
. applications by the management and employees both of the former Argyll group and-of -
theAllledgronpontheteimsdescribedabcivfeJnth'eeventthattheaggregateopplicaticjiis- *.
from the management and employees exceed 1,000,000 new ordinary shares, allocations —
to management and employees may be limited to : 10,000 new ordinary shares per
individual applicant. Applications for more than 3,000,000 newordinaxy shares willthen
betre ated o n tba ,«armR hams «g ffaat n f the other «|^l ief^'nnsiiu t' yaTh iprt7topr gfgre i r rt? nl
treatment.

Ihthe event that applications for new ortlmaxy shares at or abovefhestrikmgprice
. are received for a total in excess of the number available, preferential applications at or
above the striking price will be accepted in full cm the bases described above, and other
applications will be scaled down. No allocation will be made in respect of applications,
whether preferential or otherwise, for new ordinary shares at prices tendered below the
Btzikmgprice.

The preferential invitations for shareholders of Argyll, together with those far
employees, arenot transferable or assignable and, accordingly, do not represent a. benefit
. -which may be claimed through the market, an dare available onlytoshareholdere named
on the register 'at the close ofbnamegson 1st June, 1982 and. toemployees to whom the
y itatiOD 5 are ^HdrRHs erf,

Profits • /

Both the former Argyll group and the ABied gronpbAve made significant acquisi-
tions over, the last five years and, as referred to below. Allied has distributed very sub-
. atantial levels of dividends over the period. Accardinglyit is not considered informative
to setontafiveyearsiimmaiy of pro mnna profits before and after taxation, and earnings

. CnzUoaes, •

We> luba awKtad tin taiLuc* Anst nf Argyll Ttafr PLC CArgyin and th» consolidated balance
duet OT Argyll Foods PLC and ibn robaidiariw mgetfarr the "fijrmw atej- 11 jfroujj*) at 27 Si March, 1982
and the xuatfd cmolidated jwflt and loss accounts and consolidate] statements or source and
mrotaatiaa oT fowls &r the fit* accounling periods ended on or abonc aist Urcnabn; 1977, 1978 and
3979, SSth Hsrch. M8l and 27th Much, 1982, prepared on the hosts oT lie accounting policies set out in
paragraph 4 brkw, in accordance wjlh approved audit iuesUmlaida.

The principal SbWdiariw in the fi>cmwArsrUgrtinp are aei not inparagraph 4 hplotn

Wb -were not the enditae of th* ftnaer Araril group ftr the yoan ended on or about 81st December
3977 and 197A *Qie eonsMldatrd Bcconnls Jhr toon pears were reported on, ^ilhant qualiE cation, by
another fian of Chartered ArcmntmK We srere the auditors of the fimier Argyll group for the pear
ended Slst December; 1979, tho flftaan month juaiod ended 28th March, 1981 and the 52 week period
ended 27th Mareh,lB82.

In. cur pplnloo,; the Jnaocial Infia-nudfoai presented in paragraphs 1 to 4 below Jbr U» five
accounting periods ended 27th Mardi, 1982, which is based on the audited scramits after making such,
•a^mteenartn wc aeM e r anan y. gives a true and fkir view; on the basis of Ihe accounting policies
set oot in paragraph 4 Mar, ef the eUra of aflafrs of Argyll and the farmer Argyll group at 27 Lh Mart*,
19S2 and of the profits or lomaa and Hutto and application of kinds of the former Argyll group fee each*
of tfaefitwuooiratuvporiadr then ended, on a cmwistrat hues.

Purthej; Ju cur opiinaa the cansabdated current coat ee co mita sat out ia paragraph 6 below have
hem properiy prepared in aocordanee with the stated policies to give the inibnoanoo. required fay
Stalonancnf Standard AecountingfraclioaNiBnbcr 16. - - -

; No audited acemniht' for any' of the oontpamM.in fba fennef Areyfl sunm have been neoared
in re spect o f any periodauiwrg?thMiudi,1982.

3. CONSOLTDATEDFROFIT AND IiOSB ACCOUNTS

He taWc below rets ant the andUedBOowdidatedrosnltaoC the gamer AigUgroop fee tiieflTBaoc ai in ang
periods coded 27 ih March, 1982.

IS month SStmk

prriod. period

- • • : ■ — -5 ■ Ttarxto&ol at Brabant • - • -ended rttW

SBOtUariH. STthUoreh,

*.••• ■ • -as **■ • ,__ m -2K 7 • ■ -JS7S 1979 3S«l

' JTDOO JEW) JTOOO

Thrnoven

—grocery retail andwhcSeRaTe™

T-lrtt WTCl

Difcouiimtelactmties.

TradiiJgprofiyClQre) befee growp
expenaesi . . .

Win! mSTi n B Aji n mi;- —

Edible oil refining V

Food dutribmion

CSJ

—grocery retail andwhobwale.
— frecjercejitres .

' DuROnUnuDdacllieilMBd.

Cnmp wp iawt '

Profit on sale ofa tradinsrpropo^T—— (nt .

>J»f 'r CuD

The table bdow summarises tite turnover and trading profits before interest and
exceptional items of the former Argyll group and tbe Allied group for the last five years.
Detailed analyses of the tumoyer and traffing profits, together with the bases on which
they have been prepared, are set omt inparagraph 4 ofAppendiv ITT. -

Frofit/Q^Mlbe Ibre taxation and
. ertraordinaiyj tctns.

Tina lion efpdJt/fdiMse) : —

moo

mo

'row

rwo

r-

—

lfi]9

5225

10,471
9,539 ■

30,583 ' •

9J64-

9.081

3A95

8.5)9

48,026

45^23

2o.ora

__20J47 : _

.m-039.

:

.. 339 :

746

67

24S

. . M7.

117

064)

386

138

(174)

595

2*135

- J '445'

«7)

. 470

2J543

056)

087)

. 054)

.(02)

(859-

OIU)

005)

' (533

. 907

(344)

• 211

3*589

W

* Ttmsen&den or ubout&st Worth.
1379 ■ 1379 J9BO 19K

3933

fttwwe
Forma: ArgJ
Alli ed group

Allied j
— retait _
—property profits

ofite

■ .

»•

-

£a

20.0

526-4

Am

195

6fi&8

£a

30.0

647.1

Xm.

Xn

90.6 229.8

7805 ' 8468

546.4 6S&3 677 JL 87L5 ' 1,076.6

itefii/QanOhafe(eadaD(dbiaxyfi«a^

.Erfra ordTi aa i yfle iiw (r)

NetprefiUOon)' ' . .

Dividends:

Co avcrtibl e ■preference aha re* — - ■ -
OrdtaaiyAarcB^—

08)

MB

MB

172 — —

tm

Of 72)
C7«)

211

(373?

CM2)

COO

3488

142871

48.414

229.759

1,452

573

3572

3,863

Uoo

CMS)

ess

(487)

7^88

.<680

W08

cm)

m

.. <80
036 a

Combined trading profit before intsreftahd
before certain other r

- shows that the pro formajprofit before taxation, of the combined group for the year to end
; March, 1982, after making pro forma adjustments for interest. and other items, varies
Between £173 million and £19.4. miffion. depending on the striking price of the new
ccndin^y shares under the tender; as the striking price increases, so is a greater amount
. of cash, raised from the Offer for Sale, leading to lower interest costs andhigher profits
and earnings per share.

Summaries ofthetradingresnl ts and earnings pershare of thefbrrner Argyll group
; of th e Allied gron p for thelastfiveyears areset ontinAppeii dices I andH,respective]y. -

T3mafert<iiinhm)revftn u ere M gTes
Revenue netm* at beginning of period
!QniritflacagatalTedemp(ioiiTewrve_.

Reyew ereeeiTO^Wefio£)*tmdQrpflriijd

EandagtfQ(ng)p«rAare Cri)

Dividends per share:

n.nwri.KI.yrAwiM

Ordinfiiy

2.BALANCE SHEETS

The table below aetsont foe aadi ted baltneefoeet of Ar g yll andfhaandit^ toaaiilldala d MincBihaBt pf

lie farrow Argyll group at 27 til March, 1382.

. Anryft
27d,MmnhJ9Sa

Asset* en irfuyvd :
3^xeda**^s —
Goodwill j — —

ero)

Former Argrtl groan
— ~lh March, 19B&

rooo

Interest in anb s irti«rie> -

XtWO

202

28,039

£Wtt

£000

25,653

8,136

' sobsequent to 3979 following the implementation, by new management of a substantial
programme of acquisitions and the devdopment of new activ ities from that year. -

Allied, as a . wholly owned subsidiary of an international group, hasdfefeibuted! very
-substantial levels of dividends to the. Allied (Holdings) group during the last five years,
•which have in total exceeded its profits after taxati cm. Tb e directors of Argyll believe that
the growth of Allied’s business has been considerably restricted by this dividend polity
and, in accordance with Argyll’s present polity, would anticipate the retention of a sub-
stantially higher proportion of frame profits within Allied, inprder to finance the fixture
- expansion and development of operations, and thereby enhanringprofitproq>ects.

Dividends

The directors forecast for the new Argyll group an interim dividend of 125p igar
' ordinary share inrespect of theyeartoMarch,1983,proposedtobe paid in November, 1982.

■ The directors expect to recommend a final dividend of not less than 2.50p^ per ordinary
. share^nakingtotal dividends for the year to March, 1983 ofnot less than 3.75pperonimaiy
ahare-Aspreviouriy stated,dividends in respect of theyear to March, 1983 will bebayable
• on all the ordinary shares in issue, including the new ordinary shares being offered for
' sale. It is the directors’ intention, that future dividend policy will broadly reflect the
progress of the new Argyilgroup.- - - - •

Prospects

Thenew Argyll groi^ isabroaffiybasedfood retailer with, substential reprosenta-
tion, and separate trading identities, within four important food retailing sectors.
Presto-large supermarkets and superstores

Presto, with turnover m the year to end March , 1982 of £435 million, has opened
new Presto Food Markets in Manchester arid Swansea since April, 1982, makinga current •
total of!29 stores. New Presto Food Markets have an average sales area of approximately

Current

' Stock*

251

27,750

8462

1141

1,302

36309

ZessrCuxTVnfllalnfiSea: '

. CorporaSoPfaT — J— '

406

135

398

39,755

947

- 30

1.751

42J02T7

059)

flmmeedby:
Sbarebolders’ f ondc:
Share capital.

Share prefai
Capital redemption
Revenue reserves -.

Deferred taxation .

GO

Deferred pnrchaae comridora&m.— . .

BanklwuaQwwMp— — — m— JbO

27382

5,249

33.228

32

4,873

31^882

6.000

27,882

CJlg)

28^71

6^9

32
4373

’ area of Presto stores to some 2J. million square feet, whidh represents an increase of 91 per
cent, since April, 1978. An additional 4 stares are under construction for opening after
April, 1983 and negotiationsare in progress to acquire Anther sites. By April, 1983 more
than half of the total sales area of Presto (over LOOO.dOO square feet) will jhave- been
remodelled into the Presto Food Market concept. The directors ofArgyll believe that the
Food Market concept offers attractive prospects for further development ana they intend
"to give strong emphasis to the expansion of the Presto division.

liptons -supermarkets _ ....

The Uptons division, wbiefi. operates a total of 789 stores, with turnover in the
year to end March, 3982 of £412 milli on, will continue its refit and modernisation pro-
gramnifi.ByApri],3988 2n stares, representing 46 per cent, of the Uptons division sales
area, vrilltoave been refitted and modernised within the preceding four years. .

The Uptons division's trading concept,based on a quality fresh food image in con-
yenience locations, is expected to continue to offer sound prospects from stores trading in
appropriate locations.' " ■ ' . - * ■

' Lo-Cost-limited range discount stores

Lo-Cost, which tgierates atotal ofl57 limited range discount stores with an average
sales areaper store ofsome 3,400 square feet and total turnover at a current annual rate
of around £100 TniUonJhcloffingt^reoerftacqmsitimi ofPncerite8tores > will continue
its successful traffing concept of providing mainly branded lines, and fresh food, in con-
venience locations atdiscount prices. Lo-Cost obtains 60per cenLof its total volume from
prndnrts distributed fromit^ own warehouses. •'

It is planned fiiatLo-CosPs present regional concentration in the North West and
West Midlands wQkbe'extended both through an acceleration of new stare openings and
through the convenagnto the Lo-Cost trading format of suitahle liptons stores.

^CONSOLIDATED STATEMENTS OF SOURCE AND APPLICATION OF FUNDS

The table below rets oat tht aufiitefi consolidated Matemente of souxceand application of findsaffoa
fanar AmflgMOPferfoft five aooopntinspe t iodg ended 27th March, 1982. ,, _ ,

.. • • ' > • - - ■. Mtuumln i . . wwh

period prriod

_ »a»»ii«ftBOBOra«Md ■ ended ended

' Aett* __ 3 Lst 0 mmbai ' ' 28 thXarrK Z 7 SiUardu

3977 1373 1 979 last 1933

Source of funds

AriHn?fiWrabKrijedby>operaSoM:

. .Profit/dowt before taxatkm Kod
extraordfnary items

Ertraordinaiy itenwbeftre tnttknu

A$ostxoeirtM forTlenuinot lueolvio^foo
jjavwneqt of funds;

Depreciotion —

- profit omaile of flwd —eta -----

Profit on sale of nubstfiary.

rooo

207

rooo

(344)

(7S0)

207 0094}

132

09)

1B8

03)

PnJ' , iaonelbrloffle*onfi«d asset*
field r - J —* lg 1 • ■

— . 103

.Total arising from/ 'absorbed by)

^ynMtinwVi - — - - ■■■■■—

©foersooree*:

Procreds fromsalMffixEd arertb^.
Procoeds from sale of sjb«diBTy__. frO
Estinmted woowds froax fixtd assets

heM for ante — •• -

ProeMds from i-wuesrfsbiiTts-^—.
Consideration due to vendors of

subsidiaries •

240

235

(848)

24

DieTenod parebasecoosidwation.
Ban£!oAnsJ-

Tbxaftmreenwrtd-

’ Decrense inwwlonif captal
requirement.

- THalaumoo uf fm da.

■3- - ‘ —

— ^ 575

rooo

rooo

raw

• 211
(373)

X599 ‘
till)

7J093

0447)

(162)

1*488

5^16

- 265
02)

VSSL

(146)

2309

■ CD

'127

_

as,

2,703 '

7^6

66

799

3,354
- 76

. 602
128*

156

25,758

_

.. W»0

3J.70

400
32650
■ 5

30

3,709

3,022

6^838

36481

12^77

27

June §

Vltfutncial Times Tuesday. June 8 1982

28

Financial Times Tuesday. ,JunerB. ^9^

,<\ AEGYLL FOODS PLC

for distribution will be applied-iii repaying to the hokfcss

--—me Continued «

Notes:

Ismot

tail trade, not suhfKtto valuation

fv» Allied (Holdings) has enotractecl caioiowauj w pur™* * **“ A,,s “ l

£3,634565 1 book-value £3.1855601 and has turtherwaxranted (

(with a book value of£7S9.000> will realise £8005<» prior .*• ,

set out in the letter below. The ampins is stated before account is taken of any exmhng mt lia bi lity to tax on capital .

A^F^UC,

££3 $^ *™***. 4£hJnne,1962

■^^ahwtion of certain freehold and lang leasehold u

hi accordance with your instradaona. we have considered the freebold and 1^, , —

on file schedules recently foniabed. by Allied Suppliers limited FABed") (copka afwhkh we have returned to
you signed ibr identiflestionj in order to advise you as to our opinion of their open market vahta in their radsting
ghnfji yg flt April, _

Tha m^rity of tha properties are occapkd by AI H eflairi/britggnlra ^y ca ^ ^
aatba’Al had group") for trading purposes. In these cases we have valued on the basis of vacant possession. We
have -wb era instructed by AUieo valued to a shell building, excluding relevant improvem en ts by Allied (mainly
properties built or acquired since 1972). Where however rent reviews take account of the benefit of tenants
improvements or where it has not been possible for Allied officials to segregate the amount expended on
improvements, we have arrived at ounminkm of value by including the benefit of such improvements existing
at the date of our valuation. As regards o Presto sapamarkets owned by an investment subeidmxy Allied ana
I p*.) fn MnwrJiw Kiihgirfiary- we have valued on. the assumption that vacant possession would be available. .

In cases of leased accommodation either forming port ora building partially occupied by the Allied group
or held an tbe same lease document the value attributed to tbe accommodation, is included in tbe category af
properties shown below as being wholly or partly occupied by the Allied group. There are also service residential
tenancies occupied bv current employees of tbe Allied group where it has been assumed that vacant possession
would tie available if the related commercial accommodation were vacated. However, self-contained residential
units occupied by third parties have been valued as investments at current market value taking into account tbs
terms of the relevant tenancies. There are in addition a number of commercial prope rti es entirely sublet to third
parties. which have been valued taking into account the tenancies upon which, they are let. .

We have not reinspected the properties but noted during the course of inspection in 1981, in connection,
with, an earlier valuation, the general state of repair of each propertyand have taken this into account and have
also assumed thahas and when necessary, repairs will be earned out. We have not deducted for vendor^ sale fees or
legal costs, but we have allowed for a purchaser's reasonable acquisition costa. We have not inspected title
documents and have relied upon Information supplied by Allied officials eg to tenure and, where leasehold, as to
the basiclaaseten-ns- We have also assumed that a reasonable tune would be allowed for marketing the properties
in order to secure the Ml potential market value. We have been advised by Allied that investigations were carried
out in respect of the presence of high alumina cement and we have been supplied with information m respect of
tbosB cases where it is known to exist, and this information has been taken into account in arrrvingat our opinion
of value. Otherwise we have aaramed that the properties are not alleged by deleterious materials, particularly
hy the presence of calcium chloride, blue asbestos, In situ wood wool shuttering and high alumina cement.

Hiking into account the foregoing factors, we are of the opinion that the aggregate open market value of
tberproperties referred to in tbe fimtjnnigranh of fids letter in their existing state as at SnLApril, 1982 was in the
sum of £26,923 ,000.

We have also considered the valuation review of soma 137 properties which w os prepared for Allied by its
property director; Mr. N. J. M. Spurrier, which disclosed a value of £5 ,901,000- We hove not inspected these
properties bat they are broadly similar to those we have valued and. on tbe information made available to us,
-we consider that the valuation has been prepared in accordance with standard-valuation, methods and with
dpe care.

Wa set crat below 3 table of the aggregate of ocr valuation and the internal valuation review (Tor which
Allied is responsible) which aggregate is in the sum of £32,824 ,000. Tbe apportionment of the book values as
reflected in the accounts of the Allied gronp at 3rd April, 1982 and of the valuation Baas'relfltiag thereto into
hands of sales square footage has bean prepared by officials of Allied.

Number Valuation Boot

xxihtt

Pnmertia - Properties

mfto/fyw- j

occupied by by the

Ac ADSedgnup
Allied group

Total

Freehold— Sales area:
Under 3.999 sq. ft _
4.000-7599 sq.ft..
8JMO-17599 sq.ft.

1S.OOO sq. ft and over .
Offices and warehouses .

Properties not occupied by the Allied group __
Leasehold with more than 50 years unexpired-
Saleaamu

Under 3.999 sq. *

4,000-7599 sq.ft..

S.OGO-17599 sq.ft.

18.000 sq.ft, and over—
Offices and warehouses

Properties not occupied by the Allied group .

Valuation surplus.

row

£900

£000

£W0

199

8503

_

8503

3526

13

2,148

—

2,148

15 18

10

45U

_

4514

2595

2

2575

2575

I5U

8

867

867

668

74

—

2JS0S

35®

L050

138

3538

3538

1514

43

2,789

—

2,789 -

1,158

28

4,048

1582

—

4.048

1557

10

—

1582

942

6

622

_

622

' 668

33

—

633

633

416

566

30586

2,438

32524

16525

15599

‘Yoara-failhfully.

CUVE LEWIS &PABTNEHS

APPENDIX V
STATUTORY AND GENERAL INFORMATION
1 SHARE CAPITAL
(a) Summary

The table below Rpts out tbe issnus of shares for cash and consideration other than cash by Argyll emce
1st March, 1980. Tbe table also sets out the firUy diluted share capital of Argyll following, inter aha, (Lb issue of
t)w new ordinary shares.

N amber cf Number c

1 1st March, 1990 (ordinary shares of 5p each)-

Issued for the acquisition of Morgan Edwards Limited, with effect from
28th March , 1980, credited as fully paid fpTua premium of 52pper ordinary
share of 5p each) (ordinary shares of 5p each) of which 38569 ordinary
shares ana 7,793 convertible preference shares were issued after 4th June,

Issued far cadi by way of rights on 10th October, 1980 at 64p par share in part
to finance lie cast of the aoqaisitQn of Freezer fhre stereo (ordinary shares
of Speech).

Issued try way of ca pit a l isa t ion of reaervea on 5th December. 1980 credited as
folly paid (ordinary shares of 5p each), whereupon every2orduuuyaharea

share

(far cash by way of righia on 6th February, 1981 at
jiBar|CP r^" tfi*^ r ftfdi»-w pii«itinri «ff)rii>l

ofl0p__
Hat 65p

per duos to

Effect of exorcise of conversion rights in respect of 31562 a m v e t ti bia
preference shares on 31st October, 1981; ordinary shares credited as fuBy
paid pi us premium of 59p par ordinary share and convertible preference
shares reckoned . . .

In issue on 27th Mar

Tb be issued for the acquisition of AIIiedcracQted as JBxQyi
In issue snbseqnentto fin aapdrition of Allied

Reserved farererarerff warranto free paragraph lft) betaw)

-Reserved for conversion rf convertible preference shares (aue paragraph Me)

below) — - —

Reserved far exercise of options m issue under the Executive Shore Option

Scheme (see paragraph luO below ) .

FalJydilxri^ ocdinaiy share rapital

Antbodred there ca pital. fii]V»wiT> gfliBnwprirfiinii of. ftiiwi

10500500

554857/

4549543

29596520

(29590520)

12559542

46330
42304592
95500500
137304592
. 10502562

3504,756

1340.000

36Q.65I310

170500500

efJUeack

1560,715

(31552)

1537,763

<468548

In addition, there are 319520 nndasmfled shares of 10p each which are authorised hot unwarned
arising from the conversion of 31562 convertible preference shares referred to above.

(1) Savons indicated shove in the case of Argyll and in tbe circular dated 12th May, 1982 (whichis available

for inspection) in the case of subsidiaries and apart from share issues by companies whilst wholly owned
subsidiaries of Argyll or Allied, no capital of any company in the former Argyll group or the Allied group has been
issued within the last two years or is proposed to be issued fully or partly paid up for cash or otherwise-
Cii) Save aa disclosed above and in relation to an option on Allied's holding of El per cent, of the issued share
capital ofDeltadean Limited ( which option is not material in the context of tbe new Argyll group), there is no share
capital »r Argyll any «r jut mhnid i f i rift i | i w*iji*h nr-njtnaA conditionally or nncdndl fiiHiaHyto he

put under option at the date hereof.

Cii£) Sava as disclosed in paragraphs 6(u),(vin),(ril and Ixv) below, no c onmi Ls ri pns. diBCOUiita, brokerages or
other special terms have been paid during tbe preceding two years or are payable in connection with tbe issue or
sale iff any share capital of any company in the new Argyll group.

0v) No issue of Argyll snares, which » materia) to the total issued share capital of Argyll (other than to
shareholders pro rata lo existing holdings) will be made within one year from the date of lids document, without
the prior approval of Argyll in general meeting. No issue of shares, which would alter the control of Argyll, will
bo made without such mor approval.

At the dose oftnunness on 7th Mqy, 1982, the last dealing day prior to the suspension, the middle market
quotation of the ordinary shores, as fmficatedby The Stock Exchange Daily Official List, wa3l04p, com tbe second
interim dividend of255pper share and the entitlement tn the warrants referred to inparagraph ft) below.

<Jj) Warrants

The warrants are to be issued €ree*of consideration as a scrip issue to the ewKtTnjf. Argj^tLareholders on the
xegister at the dose of business on 1st June, 1982 on the basis of one warrant for every four ordinary shares then
held and 145 waixanls for e v ery 400 convertible preference shares then held. The full details of the rights attaching
to the -warrants are set out in the circular to Argyll shareholders dated 12th May, 1382 l which is available far
inspection) and are summarised as follows:

© Each warrant entitles the holder to snbsn-ihe for one ordinary share dmingthe month of October hi eacfocf

the years 1386 to 1988 or, if later; 28 days following tho date of despatch of the audited accounts of Argyll ibr its

financial period ended on or about 31st March of the same year, at a price oT120 pence per ordinary share.

If, while any of the subscription rights remain capable of being exercised. Argyll is placed in liquidation.

GO

: exercisable and

each holdtx of warrants has tbe right to be treated aa if his subscr ip tion rights

exercised on the day immediately before Argyll is put into lkroidalion.

(Of) On any capitalisation issue or sub-division or consolidation of the share capital of Argyll, the number
axal/ar nominal value of ordinary shores to be subscribed for and the subscription price will be adjusted accordingly.
Gv) If Argyll makes an offer or invitation to the holders of mriinsiy shares (whether by rigbteissiieorotherwisiO
on or before the final subscription date of the warrants, a like aOer or invitation shall be made to each. wananL-
holder as ifhis subscription rights had been exercised.

tv) If at anv time prior to 1st October. IMS, a. take-over cflier Is made for Argyll and the mnmhrnS m-fiir

ordinary shares <ff Argyll consists solely of the issue of ordinary shares of the offerer, and the oQmr makes
available an offer of warra n ts to subscribe far ordinary shares of the offeror in exchange fig the warrants, which
•the finan c ial advisers to Argyll conadnr in their opinion is fair and reasonable, then, satject to certain other
circ miw t ai> ee s ,an the waaants aboil lapee in exchange for the issue of warrants to Buhacribe for ordinary Aareg

of tbeofferon

Gv) In other circumstances, if a takeover offer is mate for Argyll whilst the mtwcripiMin

■capaibte rf being exennaed atri such oflig becomes unconditional, each holder of warranto Khali ha afrtjtledta

exerriae his subscription rights.

(vii) Ifthe Buhscription rights under tire wanantadiall have becn^xerdsed in respect aT7G per cent, or more
oftheenfinary shares to whroroA rights relate, then the ontstandinpwarranta may hp «ttnpnUnW iyrmTg#yt « »t
fay ArgriLproritfing the new ordmare shares aabecrihcd for cam be sold at. npremiinM h> »Vu,«n W > ; 1 , ri nt. P rM.
and expenses, and the net proceeds oftheprmmnm shall be dirtrihnteri to tbe perana«wntitlpd »tiOTatn~

(c) Convertible preference shares

The ctmvertiMe iHvforeoce dates were issued in cmmectiaa with the acqodsfikn of Bfa
T i itnffipfl, with efieefc from 28 th. March* 19S0. Kill details of the zights atta ch ing to tbs cocmrtil
aharWOTgetoutiottiecTOilartoAigril dwfawr?

anti flrw g mTimar nigm) mftHiw ne
© convertible preteenoe shares are convertible m each ef the years 1982 to 3990 hsdusiveatfimzate oC

convertible preference shares may only exernae their rigfala uf mnvgpBtmiri rf

^ ^ ^ r_i r. .±Ji

Giil^ICwhSeany iff tire convertible preference shares remain cap^focd^mn^matalDB«v»ofiarinmaae to
cnEnary drarehoUva rf Argyll and more than 60 per cant of the votes which may ordinarily be cast on a pdH
at a funeral meeting of Argyll has or wiB become vested in the offeror, each holder of convertible nreforroce
aharra shall be entitled withm the period of 42 days after notice bv Argyll tnth»KgH>rt wm q »rt n ^r m . £ r.n«rb,'i.
convertible prefermoerijares into ihlty paid Argyll ordinary aharwi.

tjv)_. 3 I& while any of the cmnrertinla prefeence shares remain capaMe of unrasfon. Argyll k p/xxd in

iflns oonve

Bqu»atain. each holder of convertible preference shares has the right to he treated as if:

in capable '
right to he
te before An

had been exarctaabteamd had been exeataaed on the day immediately before AtwII.ia p«it mint
p^aaumintheliauldatioaeqaaltothattowfaKhtowoaMliavabecopMieBtlthrf ifiwtMjn ^n fivff iw AW rf
thflflgdiiBMjrgliBiBfl fa? virtmof MdiCfliivaisnHi togefliflr wOkSBj anagcsani accMil lcff ftft fc " **

priorilytoaity other dmres for the time being in issufci

W .TlieluilderaofoonvBrtfokBreiarenre shares are entitled to receira notice rfandta attend at axty general
meeting of ArgylL Howsro; tbs Boldars of conrertiUe preference shares are -not entitled to vote at any such
general meeting uiilese either fa) at the date of the notice cnnvroing the meeting tha dividend on the convertible
kharre is axmoatiis in arrears and for thk purpose eccadbidend mall be deemed to be peyaUe on.
30t h Ju ne and 31st December in naA year; or ft) the nneuiess iff the meeting ii»4iiA^ fl|f consideration of a
re adutfe tfor winding up Argyll cr fig a reduction in capital of Argyfl or aoyregdution directly and adreredy

modiftnng or Kfcroa - .? any of the mecial rights or prrvifegaj attacEed to tbe convertible preference shares in

wjuch ey e tbey^wiP o n y be enti tled to vote at the meeting oa any such resolntions.Wben entitled .to vote a*-;

aHSegaid,Bw«y holder of WlUVUrtMa p p fmwut* riiallimnn H a>m ip i)f frahda hg^i nriff tf^ p Tipon a poll ■

have such number of-votes equivalent tn the pnrvnl ng °f ta ™- fl o ,T v? r riW ei || ‘ e f wtftnmj # i" T f(dpdd <1 d by the par -
yal ua ■ . .'eaffi mdinary ebare in issue at the time in respect of each convertible preference share held bv nim-
WJ _ N oto ther efasres ranking in priority to the convertible preference shares may ba created or lssuwi. bet
Argyll, l* ™h Uw to nue rurtbar preference shares, whether -convertible or o therw i a e, ranking as regards par-.

tiqpaooninpfttGteor a a i ietepmpaimwTth. thB ^ uMMtM itpriiO H r iV e ihiiv^ .ealOT gmf ifaftrtiii Tvmr^l valnaof

w® preference capit al immediately following the issue snail not e yi yre d tire nomxnal vxhie df Argyil s Issued,
ordinary riiarecapitalat that time.

(rii) ^ Unless previoaalr convartedcr redeemed, the aareertiMfl p rofor 1 — y* at par car

31st December; 1996.

(©Executive share option scheme

On27thOriaber, 1980. following fte approval of Argyll ahardbolderem general meeting, Argyll introduced
a Hhare option scheme for HBflior manngc mmt n fW "Rhft « k nown aa^Tha Argyll Executive

^ iare -PP? 0 ? fib* Schema"), are set out in tbe dreular toohareholdere dated 10th Ortober, 1980 (whidi.

k available for inspection) and are summarised aa foDnwK

G) _ Offers of partiej pa t inn hp mnA> t^pych epwwtnw^ ^m M rwrfiwWwg eggnitivadirecfawB ns the board

shall select ■ _

2568,000 being approrimataly 5 per cent of the imisdraSnaiy al^i^tal (be^e^wing far the isme of
sha res in a nmecnou with the acqniaitan n of Allied in June, 396£).This figure ftut not the peremitage) ^ia suffict

opinion Jkfr and reasonable, Jr is (he intention of the directors- of Argyll to seek tbe aariction of kharefaoldere to

ifM'TMJlg thin mpTimlTTW iw CTpgjg — J- — *■ ^ 4 m • 1 c * .

issued ordinary share capital, following the;

Last of The Stock Enhance for the last the date of grant and ft) the nominal value. On the

grant of an option, option holders. wQl pay £J. prjd they will hhIb* their own. ^muipwimig to finance the
snbeaiption on tbe exercise of their options.

(iv) The value of shares (calculated by reference to -the subscription price) in respect of -which options may be

granted to anv one participant nmafc Tint ttxrtvti a maiimnw, nf four thjmi )ik anmwl ppitjinB«ni« at the date of
grant of such option. ■.

(v) Optiops win TinrmaTlv ha praafaJ-wM,;,, TTTTp^T^r-ffm^nt. nf th* smMttxf mnfinlidattti

resolta of Argyll No option may be granted after 26th October. 1990.

ivi) Optiona, which may not be transferred or assigned, wiC not nonnaHy he exercisable before tbe expiry of

threeyeais from the date of grant Options will la{se at the expiryofseyen years frran tbe date of grant

(vii) The shares allotted on exercise of an option wifixank pari passu in all respeda with the ordinazy shares

tbe n ro iffiuei^rephr hat thiy will mrfuank for any dividetid or diBtributian of Aigyiiaimounced prior to the date nf

eradse.

(viii)

aasessxnentto tax as earned income nnder Schedule]

Options in respect of a total of 395,000 ordin.

Deoeniber, 1980 to twn directocs.Mr.DJ.BmTiiftaijdl .

in reject of a total of 806.000 ordinary sharea were granted ataprioe of 97p per share on 16th November^
earn dfrectoc Mr; C. S. Lawrie, and 34 senior executives.

Options ini .

wffli Argyll of two sanlor executives.

A certificate of exemptioa. under Section 39 aF the Companies Act, 1948 has been given by the Council of
Tbe Stock Exchange in ralatinn to the disdnsura of the names and addnuEesof the hokkxs-of the options other .
than those named above.

2. BORROWINGS •

As at the dose iff business on May. 1982, the former Argyll group and the Allied group had
outstanding borrowings and cash balances as eat out below. The table also includes, the term loans to be drawn

by Allied to Allied (Holdings) on 30th May, 1082. Tbe table ignores the cash receivable, estimated at£8fi i
from the proponed sale of autain properties afAllud, as referred to in Appapdixll£

Borrowings:

Former Argyll gronp:

Bank overdrafts (secured) «.

Tferm loans (secured) - - - - —

Allied group:
Term loans.

Lonnstocka (iff which £15.5 million is seearedL

Tonmlnawrapifat

Combined new Argyll group:
Borrowings at 22nd May; 1982, as above

Maximum i-mw tfflnn lnan« to I* drawn fa finmin pin nmh elpmnn t nf the rrmmlagatiimfortha

acquisition of Allied and expenses. u .

Estimated interest payable on consideration for Allied

M a ximum co inlilned borrowings of themew Argyll group ..

Bank balances and cash:

Former Argyll group -- - ; -

Allied group (£5.6 million subject to loan stock restrictions of which £45 milium is pending
substitution of acceptable security by the naw Argyll group) —

455

243

25

VLB

09

24.7

25.6

Combined bank balances and cash of the new ArgyD group

Save as disclosed above, and apart from intra-group indebtedness and guarantees, no company in the
former Argyll group or in the Allied group had outstanding os at 22nd May, 1982, any mortgage s , charges,
debentures, term loans, loan capital or any loan capital created but unissued, or other borrowings or indebtedness
in the nature of h ur roii-in fpc, including bank overdrafts, liabilities under acceptances or acceptance credits, hire
punharo commitments or any guarantees or other material contingent liabilities.

3. WRITTEN CONSENTS

Arthur Anderam A Co, Price Waterhouse. Me N. J. Mi S p ur rier and Clive Lewis & Partners have given
and have not withdrawn their written consents to tho issue jof this documen&witb references to their names mid to
the inclusion of their xelavBnbxeparts and letters in the form ami-context in which they respectively appear.

-L EXPENSES

Hie expenses pqyable hy.Aigjil relating to the aaprirition of Allied and to the Ofler for Sale, including
capital duly (at the tmnbnum striking price) and underwriting commissioa. are estimated to amount to approxi-
mately £3.7 million (exclusive of value added tax), of which approximately £32 millionia considered aa relating to
the OnerJbr Sale.

6. DISCLOSURE OF INTERESTS •

(a) The interests nf the dirertmw, Tnrlndingy fanily infaraafat, frH Iwiii rfw a) unlgg otherwi se stated) in
the diam of ArgriL as tixy appear in the regirter maintiuned under Swtion 29 of the Companies Act 1967, os
amended, are set ant below:

•J.G.GnUrver,

tlXF.Burditt.

CL M. Edwards.
-ELK. Edwards:
beneficial.

nan-beneficial.

♦M. A. Grant.
(LSl Lawrie.

H.M. Plowden Roberto.

*R- E. Semark — —

‘ *D.G.CL Wrfistar

Ordinary

item

' CoazertMe
prefreeim -.
stares

Optmuto

onwuny

shares

400,000

—

100500

578,835

14569

89,556

11541

—

’ . ~

100,000

—

—

100500

♦Mr- J. G. Gulliver, Me M- A. Grant, MnD. G-C- Webster and Me R.E. Semark are directors and riiare-
htdderaof JGAwfaoge wholly owned snhridiary Jamgt Gulliver Awinriatwi InvwitmiinbcIJinited (VGAP) bnlthf ^
515 percent interest in Gulliver Foods. \

t Me D. F. Bnrditt is a director of Gulliver Ifaods.

The nrter e at a of those direc to r s of AigyO, who are also directas <ff JGA, and their fomifies in JGA are

3S follows: Per cent of

issaedttnihiary

Otpilul

■T.r.fMiw : — .. — I,, 1 6rix

*M. A. Granf. , - 335

D. G. C. Wnfrgfa- 20.6

It T*. Rorruirlr '

The table below sets oat the aggregate shareholdings iff Gulliver Foods and its associates, JGAI and
Avosutdles limited ("Anmnnle^Ti a wholly owned snbskiuiry iff Gulliver Foods, in the present share capital of
Argyll; Comerhbta

Ordi na ry s ! on re presence thares
8569515 (SLOftJ* 353560 (34J56)

♦Redudng to 65%, following the issue oTriiares in connection with the acquiatiim of AOied, before alio wing
fimany new ordinary shares thal may be acquired by Gulliver Foods under the Offlw for Sale.

The above excludes details of interests in warrants -which will be issued to the Argyll shareholders,
following completion of the acquisition oT Allied.

Gulliver Foods participated in the sub-andetwriting of the new anfinsayahara to the extent of 1,100,000
ordinary shares, aa referred to in paragraph 6(xv) below.

1984. In die fifty two week period emfod 27th March, 1982, Gulliver Foods received feetuntdor thin agreement
amounting to £200,000. These fees are subject to annual review.

(c) An office in London was acquired by Gulliver Fbods and! is occupied by Argyll. It is prop os e d that it
dttmld he arouired by Argyll for a caanderatian, to be determined by an iork-pendent valuation, which will not
exceed £50,000 or, in any event, its original total oast to Gulliver Foods. .

Gulliver FoodSj agreed to acquire 8532,499 anUnanr shares of 25p each in Linfood Holdings Limited on
Sul September; 198L These shares wvsre acquired by Argyll on 22nd September, 1981, bein£ tbe settlement data
for the purchase, subject to the approval of Argyll shareholders in general meeting. Gulliver Food* agreed to
acquire the shares in the event that the Bharehoideus did not approve the purchase.

Save 3S disclosed in this paragraph (c), no director ofArjo l I haa any interest, direct or indirect, in bdv asset
whkh, since 28th March, 1981, bemg the date of the last) pu bushed accounts to be laid before shareholders in
general meeting, has been or ;is proposed to bd acquired, disposed of by or leased to Argyll or any of ila subsidiaries.

fd) Sava as disclosed in paragraph ft) above, no director has u material interestlnanycontractoranrange-
meuts with Argyll or any ofitosnbainiaricsEiibsistingat the data hereof which is significantin relation to the new
Argyll group's business.

le) Argyll has received notification that Mb W. N. Casrel. a former director of Argyll, holds 2J67538
ordinary diareg.nweaentin g S3 per oenL<fffimigauedmriinaiytdiaw! e«nwfal l lvJ}gftnT]iwn^gfiH-^y, ff pfthM»HCTir
ordinary shares.

Save fix- this interest; and the interests of Colli wr Foods and Its asBoaates referred to above. Argyll has
notbeen n otified qfaipr other pers on hnld iagasubstantlal partUhat is, 5 per cent. «g more) of the or ronar ynham

tP^e^CTOolnmenta of tbe directors of Argyll in respect of tb^- fifty two week period pndml 97fb Mnrrh,

1952 amounted to £140,000, excluding the foes paid to Gulliver Foods, aa descrihad in paragraph, (b) above. The
eroalumMitsd' the directora of Argyll will not be affected by the acqo im tfanATAlllud.

(g)Mn C^M. Edwards has a amBuItancv agreement 1 withAtyllfiara fi v e y ea r period MBUM ^nApp L isss.
JfcC.SXawrip haB ase r vice agreement expiring on 31st March. 1983 with aanbsidiaiy of ArglLMnlLhLPlgwdgn

Robeta is a director of Allied (Holdings) and has a service agreement with ALUed (Biddings}. This agreement is

terminable atI2 monthffnoticeJt is the intention that Me HJi-PtowdenEobarta will become a foil time executive

of the new Argyll eromSawe as diadoaed herein, no director of Argyll hasaiscvicaap tiniailt with

its snhmdiarieit wmA cannot ba ter mina ted withont payment rf nmp Bn«Hnn a p m-fnd fitnJi MBiMi.

6. material contracts

The following contracts huff being m the otdioary coarse of badnere) have been entered into within the
last two yeare by tbe members of tbe new Argyll group and are or may be material:

(T> The agreements dated 6lh October, 1980 between AiBrfl, Gulliver Foods, AvunmDes and JGAI whereby
Gullivar Foots, AromnQes and JGAI undertnfo: to take up inlml their entitlement to 936537 arifinazy abates in
respect of tho Octabei; 1980 rights issue of 4/149543 ordinary shares at a price of 64p per share.

GO The agreement datedvth October, T“““ - - - -

agreed to underwrite the balance of tbe October; 3980 rights issue not agreed to ba taker up by Gulliver Foods.
Avomutes and JGAI, for an underwriting foe amounting to 2 per cent of the aunmt underwritten, out cfwhidi
a foe waspaid to bmmim Gordon & Co. and a foe of ZV« per cent to sub^uiderwritera.

Go) The agreemait dated latPe c amb y . 1980 between Allied and Allied i FfoMings) wbfnjyAnied pmritoiwd
all tbe iEsued share capital of Moores-Wrights , a h olding company; from Allied (HwdLngs). The oomraetatioa of
£13,647JtK) was satisfied by the issue of 3^60572 ordinary ahiarag of Allied. .

Gv) The agreement dated 1st December, 1980 between Allied and Axgyie Secuzitka CHaWinRs) Limited
whereby- AJBeri purchased all the unied (dune cajnial of Argyle Securities, an inveetmest compen^frtmi Argy to
Securities (Holdings) Limited, a fellow wholly owned subsidiary of Allied (HddingB). lhe oansmaration of £2322
mi ffion was satisfied by tbe issue of 6.739.11° ordinary shares cf Alii od.

(v) The agreement dated 21st Decembca; 1980 between Oriel and RCA International Finance Limited

CECAIF0 whereby Oriel acquired Argyll Foods (P — T > <■ *• — >-»--« — » ' =— *~i

fitTmSCAIFforaoonaideXHtion of £SSS million in <

(vO The agreement dated 22nd Decemba

Orrol fWwn RflATF fa r TnvTKnw ttv

(vfi) The agreement dated 22nd December. 1980 between Argril.GuIlivBrFfv vI^AvnTimTlwM ndJnArx

GnWvw Foods, AvanmOa and JGAI undertook to take up in full their aggregate entitlement; to 2522,1
mditau y thares in reject of the febrnaty; 39 8 1 ri g hts issaa of I2A6B542 uullxmry sbares at ajaim af 6^>
per share.

(vifi) The agreement December; 1380 b e twe en Rw i mm l '

Mon tagu^nasaociatwu wi th Noble OnHaartlanrited. agreed to underwrite the balance of fiifl
mane not agreed to be taken up by GulKvw Foods, Avonmilwinnd JGAI for on undsrwritiiw fata amounting to 29«
per cent, of the amount qnderwrifiwn,ontofwhkfaSHninel Montagn paid afee to Panmnre Gordon &Cq^ndafee
cffSpercentitosub-uoderwiiters.

Gx) Hb agreement doted 22nd December; 1980 between Samtial Montagu, Midland Bank pJc and Argyll

■whereby SamnelMiartagtt and Midland Bank pfc agreed tomake available to Argyll a secured tow ftdiity of £12
nnRiim. The foalityis eta rate cf interest. l»acd m per centiper amusn overLoadon Interimnk Offered Soto
smrfw»«nr qftM|ly -n»|M>yAJM«K to j^nrflKnnm February; 3383 and £2 minify, pm- amum ftmii Wan*, 1985.
Noto:Subeeq t Kntt j; £ 6iinl lMmafthi3 l « iaw a s rqpaidqn27tfaMardi t 1981gndTqpi^yriwTilaaf£2pi?lBnnpea:
jnnnrp ^ rating p nni

Samuel Montagu and Bank pic agreed to make available to AqgjrB SBpnrea

mill«0p.'Offi)Mefadlities.£9 mill ioh ieatarateqfinteresthasediin^AttarciBitip ^ennum overl^^to^^^^^

Offered Rate and IsrepeyaWeinaix eemi-annaal inrtahn^om5mllboncomiiwmcrc«re^OT^»^
-balance af 07 tmUioSof flfoae ftrcillties is atarateof^ interest based

tenk^red Rato and is nmavable as to £3 million in t«m wnu-anmial ntnhMoUi of <ug>gP>S

certain breaches rf *** 1^2 ie tweonSanrod Montego, .A^yH and AUie g 1

txv)

b concent oiaamuei

r,.. . T i« m^ nfrgrtamsneafodgf Mitei n fi i kBm r
May. 3982 between ^mudMox^ AiwR andAl^W^^h

proceeding, to purchase all tbe pfcw. wdinaryAares.of AreyU from Allied (H oldings) at

certain undertakings in relatnm to tbe Affiaf gronp which will apply until VArai. ■

.. takings include larthej ns i nten ance oCcert a i rifin a n rial ratieg relating to the .levels of lm-rowii igan d
assets of Allied and its suheidlaites; (b) a restriction on the Allied group acqninngorstepMangot M^p aBe iiBTOia:

2^SSSa^£SSEta 1 SSSSSBKSSSasSS£S53SSaS!SsaaEfSSHe5SK

ripon the occurrence of certain speeded "even t* i&ii i rim g certain, taea c hes of the ag re e men t. - .

ZARTICLES OF ASSOdATTON '' 1 -‘-

The Artides of Association of Aj^R oontaui
, ft) Subjert to any serial rights.rerixktuHuc
any dan of shares in the capital of Argyll, every p
autbarisedrepresentative, shall on a t
vote for eve

(W1

^jruftuiuuvnuooiiuti

principal amount outstanding or au-jaunuev oorrowca uy at gyiL ana na au paminu™ \ w " *^"n " l >

intra-gmip borrowrage, shall not exceed , save with- the previous sanction of an ordmaiy rcsolntkm of Argyll, an.
amount equal to two .times the aggregate of tha paid up share capita! of Argyll aim the total « thecapitalvnd
revenue reserves of tbe Argyll group (as more particularly defined in the Articles of As awan im)aitei3u»CTeBn».
excluding any amount as having arisen in respect of intangible assets of the Argyll group as show n m ftcon-
soUdafaOP of tha lateataudited balance ahaeta of the members of the Argyll group, aqjUBtedasmy be raw tarmy to
' take into account any company .which, haabecomea subsidiary of Argyll and any va ria tion m the paid u p share ;.
rapjtnl pn-in thpBhar flprpmium flccount of Argyll sjmaa the date of the latest audi ted , b alance she e t. v* -" •'

fd The rennmeratkm itfall the directors ahall be atthe rate of £3, 000 per aimmn or sudi samiacB^H*
determined from time to lima by Argyll in general meeting which tbe directora shall divine among Ihemqewcaas
they think fit. Directors may also be paid all travelling, hotel and other expenses prope rty inc uroed by xbroi iui
connection with tha buaness of Argyll Special remuneration may be granted by tbedagtora to rayinemb trof .

tbejwaid who rendem anyqperial<n~ extra flerykes toAigyll>tar vena goesorreaideeabnHi n on co n n e c t im i 'Bmnnie 4

canductafanycfftheaflaireofArgyiL .- ---• v-'.

•(d) A director may not -votemrapeefc of any contract or arrangement or aw ofiwriwoptBd^iateoreB:
in which be has aqy niatajal interesfc otherwise than by virtue cf his interest in mares or dcbcntprea clcBttier
seenrities or othervaaa inorthroagb Argyll and a director shall act be counted in a rprommat a mrnting-i - n - nth i rii B t
&aqyiwdatiroOTwhidUmiaifcbanodfriimvating3foiwevei;atiirechH-rbalU»aditlfidtovotteai»dte»co«uiWi :
in a qnannnln respect a£ ' ’ '

(i) thagrringofanys^.^ — — — r

the request of or for the benefit of Argyll or any of its subsidiaries; _

GO tbe giving of any security or indemnity ton third parly inrespeefcof add* or obHgafion of Argyll crapy cjf

iltmWiiin lwi'nTw Iii^ Iw hhwlfhBK iii miniiidt«ynwriWli^y ri ohiilsnrinpartiinattXpMtantM W llWHIIIIll y /

orhy giving of security; “

GiO any propoeal concerning an afferofahares.ibentitresor aecoritioBirfct by Argyll or any ofxfBfflfoddiaii *

in wfoidi he is or is to he interested aa a partiripaatinihe underrating wadKmdawriting

nfl)r«ri^]wTffiriww ^! ^-iHrillwtC5i Si^l«|'|br «f<v) wMHiiw) lyiw<ewl^ itil pt»rceiit. iw-nWIT ,lrf
miydasarf tha equity share capital of 6udi company; •• . j -

(v) ■ any propooBl-cahcenunglhe adaption arinodificafion or operation ofa superannuafion fimd orretira} writ
benefits scheme under which ^ rnayhwWPa.iA wf.k* hanlwmw jpprr H^ tyrtTM.-mh^fa qwn

the Inland Rovennefortaxation purposes. . ■■ • . *. 1

(e) A diredor may bear xnaybeccnne a dh^dor or ofiwr officer ofor otherwise interestad many ccafmmy !
promoted by Aigyll or ip which Argyll may be interested M shareholder arotherwise andno atidrdirectorsf udlber ■
accountable to ArgyQ for any remuneration or bisnefitereceivedbylmn asadirectorar officer t£, orfiramhisir daest
' in,auch other company -unles* Argyll otherwise (firecta. - .

- The directors may appoto t one or more of tfaeirnumber to the Office ofmanagihgd&ectiftrod stfof itenias

iftay tlwnlc fit. A Jiwrfwiw'j fp i'mlwl dial! wit,i rfiil« lr hnlriiwg thiitwflini^ B il^ li Mttim niirtlfyq iMim:

<g) The directora may on behalf of^ ^Argyll pay a gratuity or pension oc allowance on retiremeri ttoufit
directorwho has fadd a oy solarifid office or place afprofit with Argyll or to his wnfowot' dq^ndantsandtex aymakft
contributions to any fund and pay premiums for five pm cha se or provision of spy s uch graiuii& pc ^Stmor
ofiowance. - ‘ ■* • .

(h) The statutory proviaignsconcajimg an age Unlit for ( Er ecturo do Dot

(^TbtTOta-nnnnrfPptpMj irirpm«»ntlhr dmiriiri»^f/f.lMildqiwiW fl«Hjnn ah»rw)t.

8. LITIGATION ' j}'

So fares the directora of Argyll are aware, neither Argyll mnr any ofite gnmamaries y englipJmaqy
material litigation nwttr«>»H«»mnnyrlnmgnF'matirial rinpnrfarOT. ppndjng nr Hwagf«>«»d wgainata^ iy ctHnpaqy
in the naw Argyll group-.

.9. WORKING CAPITAL . >

lLe diroctora of ArgyiT are offcheopnnon that, Lovingregard to bank ovurdmft and otberfedE^ ffiaavoilaMe,
the new Argyll group has sufficient' working capital for its present requirements.

19. MATERIAL CHANGES ' “ ' - ■ .

Sava as disclosed herein mating to thaproposed acquisition of Affied.therfl has been namfxtorial dmqga
in the financial or trading position of the new Argyll group other than in the ordinary couxse oThd^iess Emus '
27lh March, 1982, tha data to which the last audited accounts of Argyll were made tqn.

3L DOCUMENTS LODGED WITH REGISTRAR OF COMPANIES

The documents at tached to the copies of this Offer for Sale dehvuredfrpfiieRBgigtrHrrffConipBinSsIca:
Teg^ahoa ^compriBe t heu ri tte^ »rtt^te re^i ^toinpg^^fb3rf A ppendix V, Out firms « .-'app] iretiDn,fi»

ipy of the drculxrs to (D thesharelioJdere of Are
1, both dated 4th June, 1982 to acamqsqy thhri
12.DOCUMENTS FOR INSPECTION

Copies of the following documente.sne available for inspection during normal bus? mess bodies on any
weekday ttiattudaysexceptediup to lat July, 1982, at tha offieM ofAshmwEMnrrm. CriapAfV ri BrnadreteHaiM
7 Eldon Street, London EC2M 7w): . .

0) The Memorandiim and Artides of Association (ffAxg^L .....

Cn) The audited accounts ofthe following companies: ■

Atg^a^jte^isidiarMa for the fifteen mmtfhp^wd ended 28feMardL 1981 and tfaa?a\Bwjg p»yfod ari»W

Alhed and its subsidiaries for tha52 week period ended28ft Idardj. 1981andtiie 53 wedt j xmodendod^rdApril, .
1992. , ■ .

(iii) Tho report by Arthur Andersen & Co. on the former Argyll group as set oat in Ar penffixLtorafiWTnffi

their statementof adjustment and the letter from Arthur Andersen & Co. set out in ApperodixRL ' *

Ttereporthy Price Wktarfaouseon the AlliedguupaasBtoutin^ipeniHxILtogatf rrerwith fiiarafateniait
olaqpistments. ... ... -

(vti) Tbe mat e ri al xo ntra ct a, sam tn ariaed in paragraph 6 of Appendix V.

fviii) “ - *

Allied.

(x) The written consents, iderredtoinparagraph 3 of Appendix^ " :

4th. Jtrne, 1982 : • - .. .. .

• PROCEDURE FOR APPLICATION'

be for aimnim um of2Q0 shares aodi .hereafter fbrtbe foHow-

Applicatjons fornofc more than 1,000 shares

Applications for over 1,000 shares and not more tian 10, Of X) shares 500shBi«£

Applications for over 10,000 shares and not more than 25,' 000 shares L000 shares

Applications for over 25^00 Oshares andnotmore thanlf JOjOOQ shares 5,000 shares -
Applications for over 100,000 shares 10,000 sharra

holders of existing ordinary and ^avertible preferei^S TOorSSf^

fer which eadi shareholder has^W serSS
netted that he rnay appl? without regard to the multiples ar »t out above. Compl^^^k

ordm^^shaies. Such preferential subscription invitai ions are not

New

witii a remittance for the funamoimtpayable

gan 10.00 ^onThm^ay; IWhfSe, imB2

frwo^^fedehveiy and to use first cdassmaiL Photo copiefi of :

nrsc presemanon; anennon is arawn to the decla nation in th

efited^i^jplicatioiisvnll be irrevocable tmtil 24th June, 1982.

S-Sohjectasafiiresaid,*^ ’ - -

following basis -

(a) All shares forwineb;

same price (^astjdiongpric^^'wiridiwiB not’bel^^

reasmable number and spread of sharehol^ra^^^^j^ ^ Jares » ^ whirii ptupdwa.

Cb) Samuel Afontagn. reserves the Tig V f . m w

r^pgsaoftiifi ^plication

sgsi

§§§

^•saa

S-'abteTS

?•-

•Jlia-»-£j;«ilt*»

•jn&-4 :*[«*!*

^5^55

m-*?c

, '»^as2s

iiTva--,

r.-pfr _.

:ho i:-. ....■

-a:.:; ,:.- =5^

_ - . ^

Ar*l\ -...‘^“Sie
rr.v. ■■ ..:•;,**§

«■ :.;r_ :.’ WA *fe

s. «■:?• -r -

23 3’. U

VJiirr .if. 1 .— .:i f „_
“ — —

!‘i nr;, ;. UaS|SBl

W. "^ ,1

r .V"', " : r »ai

*-.-;v.T.^ SH5a .«
; --iicyC

-nr. •

t-J

- '-7 3 p
-"■3j>i

-■--.Kii-

|;--; r l~- : r|s T

L °cS^J^ : F}^ Tuesday . June S 1982

Cwjdwi«f»

7^^7..nniTm^ l a f aT^mc / 1 < W p T ?

^-^tajfengpriflft'ynll pefjfham , ;-

'"-•' ;- / - fe)Thegzikm^^ basis ofaltocatitBiwnibe anBOtroced 011,02 as soartaa

. possible .afi^ Monday,’ 34th~ Jim& 1382. . . J

• “ "Y__ AXTl ‘L~ i'iL.i • l-:_u A'_ 3*1 ■ !* I~.Ll.-~ X IT i_ «4 . _

are received fpbr^a. total number of shares in. excess of that available.sndi preferential
. appUca^&us wfu bft ^accepted is fttU and other tq^ilicafiona wUL be scaJM down. No aHo-

■ aee^^%SapiudMoiit^t , ■ ,fi.- . -.• .. /: - V ....-■•

■. :: - r 6 ~"Ai»eptance of applications will be omditMmal.oa theCoancIl of Tbe Stock
-(Eflchange anmitta'ng the new cirdlnaiy shares of Argyjlto the Official list not later A<m .

' 24ih JcU 3 fc- 3 J 9 fi 2 r an& on compJefcinn_of tha aflq nftatinw irf A^lfed hv Argyll- MrmayE p>nfl in

wBspec&'cf smllcslatHB' wilL be referaed if such coroEtions are.zwt satisfied and- in the

not accepted or is accepted fbrfewer shares than, the ™rmlw applied fbr, pr is made at a
inic&Iagher fhandhe sfa£kS«price; the application zucme^ctrihe balance thereof (as the
; c a s e m ay bq)~;wBl berT Hic D-ped’ through the post at tbe appUcantfc ijak.lt is expected fli flfc
■Letters of Acceptance Vrill'hepostedtd successful sppEcahis oh Wedraesday, -Ifith. June, '
4982.' ^ 1 /• ' 1 •* ' _' ■ - • • ' ,. f ..-\ / •.. •■

. am u aatam; letters gf Acce|rt^^(dn3y instrudaons

c ontained therein) are lodged ior r^istration. not Itt tffl r than 30th. July, 3982. Share
. certificates wfllbe issued bn’27ih Augnat; 3L982.

- - . person, receiving a copy ofihis Offer far Sale aod/ar an^i^BcaiaanEannin

; any tecrihay other than the United Kingdom, may treat the same, as cons ti t uti ng an
invitation, to him, nor. should he in any event use such Application. Ecrah, ™ieaH in the
Tdgfa nt temfawy such an. invitation could lawfully he made to him dr 'such Form could
lawflxliy he iKed, without reuipliaxirewith. any registrationor othearkjgal requirements.
It is the responsibiKty of any person outside the United ’RiT^gda rp x piRhing to an

apphtationhereunder to satisfy himself as to full observance of thelaneof tbe relevant
-temtoiy in cohziecticm .ths?^^ indndmg obtaining- ai^ govermnfihfcal car other

Such territory.

Samnd Montagu & Co. limited,
NewIssnicD^Kirtment, ■
.Augustine Hcmse, - '

Austin Ftiars, : - - . - .

:li>ndQn£C2N 2JX»

PanmUre Gordon &C q„
SMoorfieldsIC^bwalk,
London EC2Y 9DS

tSanmd Montagu <&Ca limited, -. * Samuel m&wi*ag n fe CV-T.tTnWMr!^

■ Phoenix House. ‘ StAmahHouae;

Nenhdl Street, '■ St Ann!s Place,

‘Biiraingbarri BS 3 NH ' MJanchesterM 2 1 7 IiE'

Midi and Bahkp ll^ **Mi^Tnr>fl'H»n1r

.4$ Corn Stre et, 42 OxnyTStreetj. :

Bristol B^97PP- - . h- x . f lSTewcaj^iq)onT3^fflNE993IH

, GIydeed^ Baiik PliC, r . ■ ' Clydesdale Bank PLC,

29 George. Street, y 30StVancfflotPlacei j

Edhdmiq^EH22nsr ‘ ‘ " . Glasgow G12HL -

Eranq aaecf aiiHWHrisp By aHeatdMte witt iPd^p ricag

Ifomber ■ . T .

of shares .
applioMur •

• 200

£179

:'r£iao

£190

£200

600

• - '510 *

. '540'

570

600

j: l^KJO

— «S6‘

900'

950

1^00 •

5,000

.•••■ 4^0

4^600 *

4,750

• 5,000

- 10.000

•- $600

- 9,000 -

9^00 '

10^00

- 25/)00

- : - • 21^250

22,500

23,750

25,000

50,000

* 42^500

45,000 -

47^00

50,000

‘.^r V latest flma

10 ankonlbiaiidajilOCb. Jau^lSBB

aywi.iwi mJnj; SMi Jn^WM

..... 27th Aaeost, 1982

' .•...•' - ■- ' ,-

* -. . l-cSSSaft&f 7 v . ! : ApriaCATtONFORM • - -

-:. I'. • ■: -

' ; JW^^^wriaaagLlmclra^al.a^tiiBafliBrBBfter. .

11".- t jjiifaitlnn grtnt'whiM' mawlrirt.mt fcii twiii i M wtorfri In to Hiiii iii l lliin<«jp i * Ca.

■ '•" • Aimfin TW»r^, London BC2N'aJI.fai ff Jtfhrr with a fhgqie/

■ ■ucut n patty atJSt '^mHeadon Form.
"■ Cb»^«idlwiteTAa<fcwiitii^»tomiB«t d N^il>*^ faMft tii w^iiii (tolMlid

« ~1 ‘Hinp rf i, mmit bo suida pa^ible to TSajimW. ' Co. limHod" and cx«»«e«i "Not Negotiable*^ No

^wEut^wUbtaoAM.iial^ttacoiilitit^cniU&MJOibviBi/lMitod^inliiiUtlo
b*pctf»«a^^fiBKj«qpWiitoB.rcocs lt ' '■

I ABGYLLPOODSH

.... OMcarparated under the CampcmiesA ct 1929~Nnmber3580&)

^•Tjl

frfnJuSi

.^ 7 Wfn!TnTn!i

F'T * >1 li >i » 1 ’■* •} ; < ■ ' 1 . i^_ V lJ^JL

_

^^aiian 1,1

Tc jfciff.v
i : I :h fj'H

UVW* i Ml II Ilijililii y ■■ I hr

Qfr.Ttfr^lftwTO ■■■ ■

m THE^BCHBOTCW ARPUCAraW hfem utoiWffntBt vffl

^^%%V.%V*V.VA # #%%%%V.Ve\%Va%V\VAVeV.V.V*Va%%V.VeVeVe l V #%

. Tius announcement appears as a mailer of record only*

Bainque Nationals de Paris

U.S. $ 250,000,000 floating Rate Notes due 1989

with Warrants to purchase

U.S. $ 250,000,000 14 1/4% Bonds due 1990

Issue Price of the Notes with Warrants: 100%

BANQtJE NATIONAXE DE PARIS CREDIT SUISSE FIRST BOSTON LIMITED

SALOMON BROTHERS INTERNATIONAL

DEUTSCHE BANK AKHENGESELLSCHAFT . GOLDMAN SACHS INTERNATIONAL CORP-

MERRILL LYNCH INTERNATIONAL & CO. MORGAN GUARANTY LTD

MORGAN STANLEY INTERNATIONAL SWISS BANK CORPORATION INTERNATIONAL LIMITED

^MWWWWVVWMVkmW/^.W«.VM.VA%wj‘’ , ‘

FINANCIAL TIMES

operates a subscription
hand delivery service in
• the business centres of
the following major
cities:

AMSTERDAM
. BONN
BOSTON
BRUSSELS

• -CHICAGO '-

COPENHAGEN
DUSSELDORF
EINDHOVEN
FRANKFURT
GENEVA
THE HAGUE
HAMBURG
HONG KONG
: JAKARTA
KUALA LUMPUR
LISBON
LOS ANGELES

MANILA
MEXICO CTTY

. MONTREAL
MUNICH
NEW YORK
PARIS

-ROTTERDAM
SAN FRANCISCO
SINGAPORE .
STUTTGART -

TORONTO

• UTRE CHT

VIENNA

WASHINGTON

■For information contact :
Financial Times
Guiollettstrasse 54 •
6000: Frankfurt Main
West Germany
TeIr0611/75980-Teks: 416 193
or Financial Times
75 Rockefeller. Plaza
New York, NY 10019 .

. Tel: (212) 489 8300

Telex. 238409 JTQL UI

This announcement appeals as a matter of record only.

New Issue

27 May 1982

¥20,000,000,000

Commonwealth of Australia

. Bid: 360. -Offer. 400 -
Tel: 0624 822091
Telex: 628032 MANNIN G

8.0% Japanese Yen Bonds
Series No. 6 (1982)

Due 27 May 1992

The Nomura Securities Co., Ltd.

Daiwa Secnriti^ Co. Ltd. Hie Nfltko Securities Co., Ltd. YamaicM Securities Company,

Limited

The Nippon Kapgyo'Kakumaru Securities Co., Ltd.

Sanyo Securities Cd, Ltd. Kokusai Securities Co., Ltd.

Merrill Lynch Securities Company, Okasan Securities Co., Ltd.

Merrill Lynch Securities Company,

Tokyo Branch

Yamatane Securities Co^ Ltd.

Dai-ichi Securities Co., Ltd.

New Japan Securities Co., Ltd.
. Wako Securities Co., Ltd.
Osakaya Securities Co^ Ltd.
Tokyo Securities Co„ Ltd.

Bache Halsey Stuart Shields (Japan) Ltd., Smith Barney/ Harris Up ham International Incorporated,

. Tokyo Branch ' . ‘ Tokyo Broach

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Koyana^ Securities Ca, Ltd. - Nichia Securities Ca, Ltd. Vickers da Costa LtdL,

Tokyo Branch

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Kosei Securities Co., Ltd. . Mamman Securities Co., Ltd. • Meiko Securities Co., Ltd.
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IhkagL Securities Cd'., Ltd. l " 'The Toko Securities Co^ LtdL Towa Securities Co^ Ltd.

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Potter- Partners

30

Financial Times- Tuesday j m*e j f ; ■

Conpaflies and Markets

COMMODITIES AND AGRICULTURE

Cocoa down
in spite of
fund loan

By Terry Powy

WORLD COCOA' prices fell
yesterday with the September
position on the London futuies
market reaching a new
11-month low of £892 per tonne
during the morning. September
cocoa closed at £901.15 per
tonne, down £11 on Friday’s
close.

According to traders, this
further downward move was
caused by the failure of last
week’s meeting of the Inter-
national Cocoa Organisation
(ICCO) to result in fresh pur-
chases by the buffer stock man-
ager.

The ICCO council late on
Friday evening had completed
all the necessary arrangements
for the $75m loan under
discussion for some time with a
consortium of Brazilian banks.
However, the council decided
not to authorise the buffer stock
manager to start purchases
immediately.

Instead ICCO is to wait until
the council's next meeting in
London on the 8-16 July, to
make a decision on how best
to use the extra finance.

NZ signs dairy
contract with
Kuwait

6 y Dai Hayward in Wellington

THE New Zealand Dairy Board
has signed a contract to provide
a minimum NZ$90m worth of
dairy products to Kuwait over
the next five years.

It is confidently expected the
annual minimum of NZ$18m
will double before the end of
the five year period. NZ will
supply skim milk powder,
butter and butter milk powder
to the Kuwaiti Danish Dairy
which operates a recombining
plant said to be one of the
largest and most sophisticated
In the world.

The contract more than
doubles NZ exports of dairy'
products to Kuwait which have
been running at NZ$15m a
year. Total sales to the Middle
East are running at about
NZ$50 m.

Boost for UK food sales

BY RICHARD MOONEY

THE FORMATION of a new
body to mastermind the pro-
motion of Britisbfmoduced food
at home and abroad was
announced yesterday by Mr
Peter Walker, the Mi nister of
Agriculture.

The new organisation, ra,tch%
named “Food from Britain,"
will receive £2Qm in Govern-
ment funding over the first five
years of its operation. After
that it Is envisaged that the
full operational budget will be
borne by the farming and food
industries. "The success of the
organisation well thus rightly
depend on its ability to con-
vince the agriculture and food
industries that the services it

provides are worth -paying for”
Mr Walker said.

Food from Britain will take
over the functions of the
Central Council for Agricul-
tural and Horticultural Co-
operation (OCAHC), but wall
have much wider powers for
coordinating arid promoting
marketing: initiatives. The
CCAHC chairman, Mr Nicholas
Sapfair, will become chairman

Mr Walker praised the re-
search, investment, productivity,
innovation and efficiency of
Britain’s fanners, food manu-
facturers and distributors. But
he said in spite of the great
strides made in recent 1 years
the greatest scope for improve-

ment remained in the market-
ing area.

He noted that central organi-
sations had made a treat
impact on food marketing in
France and ■ Germany.

The announcement, which
Mr Walker described as pos-
sibly “the most significant to
come from thin Ministry this
decade,” was welcomed by the
industries concerned.

Mr R. A- Rnssh, chairman of
the British Farm Export Coun-
cil promised “enthusiastic -sup-
port” for Food from Britain.
“We believe that the BFEC can
contribute substanti ally to the
export activities of hew
body " he said.

Wool market upturn seen

BY ANTHONY MORETON, TEXTILES CORRESPONDENT

SIGNS of an upturn in the
wool industry were now clearly
visible according to Mr M. J.
Godfrey at the International
Wool Textile Organisation's
annual conference in Venice yes-
terday.

The recent recovery in
apparel wool prices was
evidence of this. Another -indi-
cator was that de-stocking had
come to an end after a drop
which had taken stocks to their
lowest point for 10 years.

But Mr Godfrey, statistics
secretary to the Organisation,
warned against too much faith
in a quick climb out of the
trough. “ Neither the timing nor
the extent of the recovery is by
any means certain," he warned.

First tentative signs of a
recovery in wool textiles in the
more advanced industrial coun-
tries had shown up in the final
quarter of last year. The
recovery was not ' uniform,
though, it being better In the
UK and Japan than In many
other countries.

Elsewhere, he detected a
good augury in the spectacular
expansion in China’s wool tex-
tile manufacturing capacity and
the downward movement in in-
terest rates in Europe which
would give re-stocking a bit
more impetus.

Turning in world production,
Mr Godfrey stated that output
at 2,860m kg in 1981-82 had
remained static at the high level
of the previous season. Output
in both Australia and the

Soviet Union, the two biggest,
producers, fell for the second
season in succession and. With
a drop in Uruguay, the outturn
in these three countries prac-
tically wiped out the effect of
bigger clips in China, Argen-
tina, Pakistan and the U.S.

In Australia production was
down to 691m kg compared with
697m kg over the previous four
seasons. In the Soviet Union
the clip was 2 per cent lower at

454m kg in spite of new
measures to stimulate livestock
production. ,

New Zealand, the third largest
producer, saw output level at
380m kg.

The main feature of the
New Zealand wool market in
the current season, according to
Mr D. J. Mcllraith, NZ Wool
Board chairman, has been the
significant drop in demand: for
coarse crossbred wool.

Rise in London copper stocks

BY OUR COMMODITIES STAFF

A FURTHER 2,350 tonnes rise
in London Metal Exchange
warehouse copper stocks was
announced yesterday, taking the
total to 146,550 tonnes, the
highest level since October
1979. The news encouraged a
modest decline in the LME
high grade cash price, which
reached its lowest for 43 months
last week, but the market
steadied later and the cash
quotation ended the day only
£1 down at £747 a tonne.

Other metals were also
relatively' steady as traders
took stock after last week's
dramatic declines. Cash tin
closed £30 down at £6,595 a
tonne, while cash lead gained
£0.50 to £285.50 a tonne and
cash zinc rose £5 to £391.50 a
tonne.

LME stories of tin fell 1,425

tonnes to 34,135 last week; lead
stocks rose 1.400 tonnes to
90,200; and zinc stocks fell
50 tonnes to 61,725. Stocks of
aluminium were up 950 tonnes
at 218,875 while nickel stocks
fell 234 tonnes to 3,132. Silver
stocks fed 110,000 troy ounces
to 34.51m.

Magma Copper Company’s
San Manuel, Arizona, copper
mine and n*tH will remain
closed this week eliminating
production of 1,580 tonnes of
copper. This is part of a pro-
gramme. of six one-week
closures, which began in the
last week of April, to control
escalating stock levels. In April
330 Magma employees were laid
off at Sail Manuel and the
working week was cut to 32
hours because of the depressed
state of the copper market

Malaysia to

withhold

rubber

KUALA’ TRENGGANU,
Malaysia — Malaysia is
expected to hold back' 175,000
tonnes of natural rubber from
the market, as its share
towards Implementing a pro-
posal by . the Association of
Natural Rubber Producing
Countries (ANRPC), a senior
government official said, here
1 yesterday.

ANBPC members — Malay-
sia, Indonesia, Thailand,
Singapore, India and -Sri
Lanka— proposed at * ■their

emergency, meeting in Kuala
Lumpur last month to with-
hold 350.000 tonnes of robber
from the market over a six-
month- period to stabilise
depressed. prices and hasten a
market recovery.

The six month period will
begin after an ANRPC meet-
ing in the first week of July
in Bangkok, at which a firm
breakdown of each member
country’s share . will be
decided.

Malaysia's Deputy Primary
Industries Minister Bujang
UUs said that government
agencies have been asked to
set np separate stockpiles as
one of the measures to be
used to achieve the target.

Other measures may in-
clude tapping holid ays, bans
on the use of yield stimulants
and accelerated replanting.
Reuter

Rotterdam grain
strike ends

ROTTERDAM — Grain handlers
in the port of Rotterdam
returned to work yesterday
after a three-week strike.

The union said employees of
Graan Elevator Mij (GEM),
Grainwave and Maashaven Silo
were working normally after
deciding on Friday to end a
strike aimed mainly at obtain-
ing shorter hours.

A spokesman for GEM, the
largest of the companies which
employs 830 of the port's 1,000
grain handlers, said the men
were unloading eight vessels
whUe another nine were wait-
ing to discharge.

GEM said its balance in port
of grains, oilseeds and deriva-
tives stood at 1.03m tonnes
yesterday, compared with
192.000 tonnes on May. 10, the
last date on which figures were
issued before the strike.

TROPICAL TIMBER

v.

BY SRI} KHJNOAfUA IN GENEWA

If)

LOOMING TROPICAL timber
shortages because of severe
depletion of forests have given
fresh impetus to negotiations m
Geneva to create" a 1 raw 4> terw
national agreement on tropical
timber which cotiki be finalised
next year. :

Delegates to 1 a. 50-country
comraPtotee appear* more confi-
dent than ever that the current
session ending on. June il will
be the last before a diplomatic
negotiating conference is called
to fioahse the accord. Negotia-
tions; were begun neariy four
years ago under auspices of the
TIN Conference on Trade and
Development (Unotad)-

Japan, which. . imports the
largest volume of tropical
timber, with more 30m cu
tonnes in 1980, is the agree-
ment’s keenest supporter - and
has tabled decafled suggestions
for its provisions.

The accord as pdanned so far .
differs sigmficanfiy from classic
commodity agreements such as
those for natural rubber, tin,
cocoa and sugar, because it does
not envisage price stabilisation
measures. Instead, it focuses
heavily on ensuring that the
world wil have enough tropical
timber supplies in coating
decades and especially after the

are expected.

AMiougfr less " eye-edtahing
Than 1 other' commodities, ait Sffbn
the tw^ncal tiraiberltrade is su*^-
passed 'oniy by the § 12 bn. coffee;
trade, according to Unctad
estimates! !.’ .':

Export surpluses of the nrnin-
tropxcal timber . suppliers-—
Indonesia, and Malaysia— — will
fall sharply .after the year 2,600.
because rapidly depleting -hard,
wood forests need a 30 to 50
year cycle to grow, again, an'-.
Unctad report says.

Tropical 1 forests are being-
depleted at a rate" of 8m
hectares per year, and wHT also
be hit in the' future by such fac-
tors as temperature changes in
the biosphere due to more
carbon dioxide and changes. 'in'
the sea level. The main timber-
producing Countries of . Asia,
Africa and Latin America are
on .average planting only one
hectare of tropical! timber
forests for every 13 hectares
that are depleted. Reforestation
programmes in - Asia :have run
into investment ; bottlenecks
because of recession in the main
industrialised countries’ buyers.

Reforestation. .! programmes
have -also focused mainly on
fast-growing species used .for

pulping v and .* flirt . begleetii^.
other • uses vwtin * '

■species that grfiw more slowly?

■The Jogging induStry vs&myT;
ture is changing- becatEe pro-
ducers wish to process the Wood?
before 'export- and.tOsseU,- more?
manufactured, products. • •_ fy -

As envisaged sot- -far,-: dw?-
agreement would contakr jour^..
main 'elements: ■ Eibsti aJ pa#-|.
grarame to . prantote .research 1 / -
arid devetafudent producing!,
ieouhtrieff ^ 42 projects costinp -
£L05m' hstve* been agreed upon’ ...
informally" -‘ ■ 11 ;; / *■•*•■*; ‘“T :

Second, creation 'of mbch^?
lam to gather rpirteet. imtelli-f
gence needed by! expprtefis^aatf
agreement of ; prineQjIe -bag
been Reached da t a '■
monitor - markets' and ^evateataj \
friends; as weilr.as' .exchange
information among:, Importers ,
and exporters! - “ • "I"

Third, ..the proiadtion-^ of
tropical timber processing V
prodocmg , countries., ; fAn
Unctad . study V : Te«Hiira«His
more trade 13)era3^tipa ou a
pi armed basis, transfer oi pip- ,,
cessing technology,, technical
advice to developing countries
and creation of adequate finan-j
ring methods. -- • ?, Vr-1"

Fourth, preparation of re-
forestation and forest manage,
meat programmes. *

Coffee surplus warning

BY JOHN WICKS IN ZURICH

COFFEE STOCKS are rising to
threatening levels in certain
producer countries, . according
to Mr Jens Sroka, Manager of
the leading European coffee '
roaster, Jacobs Ag.

Speaking in Zurich, Mr Sroka
said that stocks had reached
61 per cent of a year’s produc- .
tioa in Colombia and about 75 '
per cent in (he Ivory Coast
“How long can the Interna-
tional Coffee Agreement (ICA).
dam the increasing - pressure
from unsaleable : quantities? ”
he queried. .

The surpluses, arose from the

ICA quota system with many
small countries who could not
afford- stock-piking selling, their
surpluses outside the tradi-
tional ICA market to so-called
“new markets 1 ' at as much as'
50 per cent below the market
price, he claimed. Main benefi-
ciaries were eastern European
countries not belonging to the
ICA. • •

This .situation could be
fundamentally changed by a
Brasilian frost this month -or
next However,, the surpluses
in producer countries should
mean there wouklbe no danger

of a recurrence of the situ* »
tion in 1975,. when. Brazil ex- .
perienced. . " the “frost / of :ffie *.
century " and prices, rose,
shaiply. ' • ■

-Jacobs Ag estimate Vtttat _
world coffee reserves rtioeM -
fail slightly , from 43.3m bags
(of .60 kilos) at the start of tfce-
1981-82. crop year to 42.8m bags, .
at the beginning of the 1982-83
harvest Then-they predict them
rising sharply to 5l.5flf bagisaT
the start of 'the crop year. 1983-
1984. These estimates assume
ho Brazilian frost • V ’ .

P

5>”

It?

*1*

P

;

r* *

tm*

; jjl 1

iwefli :
1 gb*
jrtfe r ''

S 4:' I
Tli

im

ftfra

F 1

*5 ?'

•: j jw

LONDON OIL SPOT PRICES

SPOT PRICES

GAS OIL FUTURE8

BRITISH COMMODITY MARKETS

BASE METALS

AMERICAN MARKETS

months £2.925. 30. 40. 30.
B18 tonnes.

Turnover.

WHEAT

Latest

I Change
1 + or —

CRUDE OIL-FOB (Spar berral)

Arab Light |33.aS^3.«j+.30

Iranian Ught sa.awa.M +.4B

Arab Heavy 30.75-31 JO + .12

North Sea I Forties). -35. OO + .50

African! Bonny U'ht)|35.85-35AQ| +^0

PRODUCTS-North West Europe

(S par tonne)

Premium gasoline.... 375-380 —

Gas oil 300 +4.5

Heavy fual oil 15B-170 -1

Month

Yoet^laytei

dose

+_or

Business

Done

May-

3 U.S.

per tonne
aasjjo”

—5X0

mADto.M

June...

286.00

-1AD

2B8.60-85.2S

July

282.75

—0.76

S88.00-82.75

August

284.50

-1.00

2B7JN-84.2B

September

286.00

—5.30

2B9.25-8S60

October™...

286.00

-AM

289JM-B8JD

November.

290.50

-4to

—

December.

293.00

-bJbO

—

January,....

284.60

-ajrii

—

BASE-METAL PRICES were generally
. much, steadier on the London Metal
Exchange. Recently depressed Copper
traded betwe en £ 770 and £778 before
closing at £773 with little selling
'.pressure: evident. Lead touched £302
pnor to closing at £294.5 while trade
buying end d eman d lor cash material
lifted Zinc to £399 belore profi I- taking
pared the price to £392 at The close.
Tin opened at £5,560 end touched
£5.600 on trade covering against
physical sales before easing to end the
dey at £6.575, Aluminium closed at
£534.25 and Niefctl at £££32.5.

NICKEL

a-m, 1+ or

p.m.

-for

Official 1 —

Unofficial

-t

Spot

2875-8 1 + 4

[ 2880-90

+ 55

3 months

2930-3 | + 16

2930-5 |

+ 45

Mirth

July

8«pt.|

Nov-

Jan...

Mar

Yeeterd'ysj -f-or
close

117.45
108.60
112^0
115.95

119.45

* Cents per pound. 4 MS per kilo,
f On prevmua unoH»ota4 dose.

M«y-[ 1 22,95 I — 0.4B|

-2.1CH

— O.BO

|=SS

'-o.w

BARLEY PRICE CHANGES

Yest'rd'yei +or
due I —

The Middle

NEW YORK. June- 7 60.15. June Bt.3S. :

Eastern criaia pre- five Hog*— June 60.42 (61.92). July

In tonnes unteas otherwise stated. ci P |tBtBd raRlw precious metals. 58.70 (B0.20}, -Aug 57.20..- Oct 54£7;!

104.80. . Q.BS
IOB.36 i-O.10
118.10 : — O.IQ
115.45 J

■lane 7 1

+ or

Month

1982

1 1

ago

llU70_C0jd M-taI>

I

SILVER

GOLD MARKETS

Gold rose $5f an ounce from
Friday's close -in the London
bullion market yesterday to close
at 8324-324 J. It opened at S323}-
3241 and traded between a high
of £326-326* and a low of $322*-
3234. The firmer trend was
mainly a reflection of increased
Middle East tension.

in Frankfurt the 121 kilo bar
was fixed at DM 34,880 per kilo
t $325-01 per ounce) against
DM 24,300 ( 8320.05) previously
and closed at S324{-325{ from
£31S}-3U>}-

In Paris the 12} kilo bar was
fixed at FFr 64,400 per kilo

($322.37 per ounce) in the after-
noon compared with FFr 65,000
($326.06) ln< the morning and
FFr 63,500 ($321.35) on Friday
afternoon.

a-m. or p.m.

+ or

COPPER

Official j — [Unofficial

— T

*1*1 *

£

Cosh

745.5-6 (+1.26:746.5.7.5

-1

3 mths

772-.5 f+5JSJ 773.6-4

+ 1

SetHemt

746 j + 3l —

Cathodes

1

Cash

737.5-8 +5 Aw 738-9

3 months

764.5-5 i+5JSi 764.6-6

+ 1.5

Settlem't

738 +3 . _

U.S- Prod.

— 1—1 *6B

-76

Silver was fixed 1.55p an ounce
higher for spot delivery in the London
bullion market yesterday at 331 .2p.

Jevahs were: «pot 582.Cc. dawn 0.4c
three- month 513.6c. up 0.4c: six-manth
635.2c, up 0.8c: end 12-month 678.6c,
dawn 0.4c. The motel opened at 331-
334p (592-SSSc) and closed at 328-
33 Ip (588 -592c),

Business done — Wheat: July 119.40- “‘feni effl" I

117.45, Sept 10B.75-1OB.55, No* 11235- — » slbrtw ®! 1

11220. Jan 116.20-116.00, March '

119.70-11930, May 123.00-122.95. Sales: ‘TZ™'' 75
339 lots of 100 tonnes. Barley: Sept

104.85 only. Nov 108.35-108.30. Jan ^^ £766^5

112.10 only. Mar no trades, Mey no

trades. Sales: 33 lots ol 100 tonnes.

IsRiaotis (“-*)» Aug 62:75. Sept ... fSoya beans— JWy 634^-636 TB24V)^

aoiufo is - 63.50-63.30. Dec 65.95-66.20.- Jan 66.85, nwu— mat. mmi <u«jijiijai - iu-'

(-1
+ 1

Gold troy tw_. 85S4.37S
Lead Cash... ^..*8 85.5 1

Smths. S297J5

Nickel^.. S3982_

Free mkt !|S55/855c

LONDON FUTURES

Month

Yesfnday’ai-f or
close [ —

Business
Done .

August „...

fi per troy
ounce I
1MA5h*jaM.lM

1*5.49-596

sepfmb'r

U8.TO8.«^4J2!

—

irf.fi0-7.75l +4 JMH

13B.B0-7JH

November

1 88.60-0. Pjj+4JIIEi

ISSjOO

December

181.40- ].4&|+4tol

181.40- O.BO

traded at E745.50. three months £771.00.
71.5. 72.00. 72 6. 73.00. 72.50. 72.00.
Cathodes: Three months £764.50 Kerb:
Higher Grads, three months £774.00,
75.0Q, 5.50. 6.00. AUamoan: Higher
Grade, three months £776.00. 75.50.
76.00. 75.00, 73.50. 73.00. 72.50. 73.00.
73 JO. Kerb: Higher Grade, three
months 1773.00. 72.50. 73.00. 72.00.
72:50. Turnover, 20.025 tonnes.

SILVER | Bullion i+ or
per I. fixing 1 —
troy oz. j price j

L.M.E.

p.m.

Unoffic’l

+or

Spot 1331.20P i+1.56

Xmontha.l341.40p +1.56
6 morrths.!351.40p 1+I.6I
12montl\ei572.B5p '+0.6Q

329. 5p
339.7&p

+1.76

+296

LONDON GRAINS— Wheat: U.S. Dark
Northern Sprmg No. 1 14 per cent
June 110.25, July 109X0, Aug 10830
transhipment East Coast seflarc. English
Feed lob Sept 112.25 South Coast.

Oct 114.25 East Coast setters. Main:

French first half June 138. CO cansinp-
merrt East Coast seller. S. African
Wtwte/YeHow June/July 85.00 seller.

Bsrley: English Feed fob June 113.50, omnt .

Jan/March 118.00 5a« Ouest setters. Tungstan2Loibiflll.68
Rest unquoted.

PlaUn'mtr or'Jf360
Freemkt — £166.15
Quicks 1 1 vert _|*366i575
Silver tray oz...!351^0p

3 mths. '341.40p

Tin Cash [S8595

S mtfis......_„ £5375

+ 1.6

+B.75I

cipiuna rallies in precious moiaie. oo./v • (ou.og, -Mug o oo-pr..
.copper, heating oil, cotton sod auger. Dec 54-25, Feb- 51 to, April ^49.00. Jung-.-
Cocoa remained under -pressure oo 60 to,- July 50to.

dteappoimmem over e delay in buffet . **Malzo— Uuly Z74^.274^ (270^). Sept

rilA

iaiis
tr- '

«c:

atock complex had a- limit decline due 292. May tol', July 307*3, -
t o technical selling despite bullish . Pork Balliee^uly 73to (81to). Aia
fundamentals, reposed Hemold. 78.07 (E0.07], Feb ^73.32. March 73175:

Copper — June 61 to (5Bto). July May 73.80. July 7352. Aug 72^..

lx97Kfiii<is ■.». <iv«r<ni.<K,-« a,> w.ni, • Aug 639*1-638*1 (623). Sept 642-543. RoW

March 68.60. M«y 70.10. 4 v\f 71.70. .• O48-840* I ,- .Jan 663^ 663. Msrih €79,
icsea H5 Sept 73.30. Dec 75.66, Jan 78.40, March . May . 692. July-702. * • .

— 77 to. , -• - USoypmean Meal— July 183^1815 -

Poatpes (round white*}--Nov 78.5 (181.8), Aug 1 84.5-1 84 J' (182.7), Sept
(78^), Wterch 80.0 (87.6). Apnl RXL5, 180.4. yOct18T^. T)ec 1“1 jW9fl.B;.'J».
Sate?; 328^ • . - , 103.6-183.6. March 197.0-198.0. r«W"

TSilver— June 618.0 (S86.5). - July 202^-203A July 207.0-208.0. - J -

8331.75 622,0-633.5 (581.6). Aug 631.0. Sept Soyabean - Men)— July m36-iS38

£3974 837,0-639.0, One 080.0-883.0, Jan e88.1. (19.02), Aug ’19,65-19.67 (19.31),.- 'Sept

25Drt50o March 683.0, May 688:5, July 713.7. 19.S5, Oct 20.10-20.15. Dec 20.50, Jan .

Sept 728.9. Dec 751.7. Jsn 759.3, March 20.75. March 21.20. May 21-50-21-00.
T? 4 - 5 - July 21 -70-2T.80.

18892.75

(£857.5

£ 886.6

8839.75
+0^ (£318.25
+ 1

£260

+4.15.A168.5H Sugw—No^ll: July 7.^7.31(7.14). • t Wheat— July 34&S-343 SepT

r + o aBS .'sola d Z*SSJg£:m&

It ®- 50, 8J80891, Mey 9:00-9.01, 400-400 1 *. Mey 406\i. July dtlOW. ' '

-sopwlfi ^ 9 22^.23 Sept 9.35-9.55. 0« 9.40-

-87^67202:5 S • unless otherwise stated. TS per, troy

18106.98

LME — Turnover 88 (98) tots of

10.000 ozs. Morning: Cash 332.0; three
months 342.0. 42.3. 42.2. 42.3. Kerb:
Three months 341.5. Afternoon: Three
months 339.0. 40.0, 39.5. Kerb: Nil.

9.70. Sales: 5.054.

Tin- 542.00-545.00 (544.00-547.00). ounce. 9 Gents per troy 'ounce. '
. . . . CI 1L C « G ?' Jun ,* 7 MCBn “ P® r 564b . bushel. t Cetits 1 '

HGCA— Locational ea-ferm spot Wdfrm*MMbs|l118/11B j... |01O6r11O . I0 ”* ^ ®-|fibu*hel. J * .9et short toil

pnetss. Other milling wheat: E. Mids Zinc Cash U391.6 +S 9411.5 ■ S'? 30 ,b) ’. J^* Can -^ por

125.00. Feed barley-. ' Scadand 112.00. 3 mths_ SB3Bl^a +2JBS417JI6 : f 5 * per *. 1 -**•.- *Cents=.pef -

The UK Monetary Coefflcisnt for the Producers. ...|8860/900| IfBM/MO “0.15-60.15, Fob 60.00-80.15, Apn l 60.20- down, tt S per mstnc ton.

Oils

week beginning Monday June 14 ____

(based on HGCA calculaiions using coconut (Phil)

four days' exchange rates) is expected Groundnut j

to change to 0.920.

Turnover: 572 (953) lots of 100
troy on.

TIN

■ m. +or p.m. i+or
Official 1 - Unofficial! — t

June 7

June 4

Gold Bullion (fins ounce)

Close iS324-3S43i (£181-181**)

Opening : 8323i E -324i< (9181-181**)

Morning fixing ... ,8392430 (£180.498)

Afternoon fixing .,'938 5.25 (£181 .775)

Geld Gain*

18X1814-319
8316te-317
S3 18.50
[8318.75

(£176-1761*1

(£177-1771*)

(£177,3SB)

(£177.409)

High Grade £ £ £ £

Cash 6600-30 '■‘-B5 65«MOO !— 50

3 months 5690-600 + 3& 6670-80 65

SeMem't 6680 +9B -

Standard

Cull 6600-20 ' + S3 6590-6001-30

3 months 6590 toO : + SO 6570-80 -27.5

Settlem't 6620 +30 - !

Straits E. :62BJ!1 ».... - ;

NewYork -

COCOA

Futures opened £15 lower end con-
tinued to ease as commission houses
sold following the ambiguous outcome
of last week's ICCO talks. Manufac-
turer offtake end price fixing later
steadied values and prompted jobber
short-covering at the close, reports Gill
end Duffus.

RUBBER

The London physical market opened
unchanged.; attracted little interest
throughout the day and closed quiet.
Lewis and Poet recorded a June fob
price (or No. 1 RSS in. Kuela Lumpur
of 203.9 (209.5) cents a kg snd
SMR 20 177.5 (same).

[£380

1510

Linseed Crudo|.

Palm Malayan
Seeds

Copra Ph lip ...
Soyabean IU.SJ|:

Grains

BarleyFuL Sep

Maize £136.00

Wheat FuLSep £108.60
NouSHardWint

IfiOOu

t

8856

1C 104.80

+ 1.25

8487.5

t

8507.5

EUROPEAN MARKETS

Maiij-.tU.S. S per tonne): UiS. No. Aug 379. 388. nil; Oct 399. 403,.tiil;.Dpc
June .407, 412. nil: Jen .410, .412. nil? Mar*

t

9274.5

-Oto £104.75

SI3T

~OJ0 C122.W)

r-rwTA rvoafday t! + or Business
COCOA i Close • - Done

No. 1 YestT'ys i Previous Business
R.5.S. dose I close Done

Other
commodities,
Cocoa ship'f

!£903

Future SoptlGSO 1.5

Krugerrand ]83S854-333ie

Irt Krugerrand.,. 8171 >2-1781*
1/4 Krugerrand.,. 88719-881*
1/10 Krugerrand.. 835i*-36is

MapteleflC- 8332-333

New Sovereigns.; 878-78 la
King Soveralgns.|890-Bli9

Victoria Sovs 890-9 H*

French 20s ,87Z-74ia

50 pesos Mexico: S3B6t*-399
100 Cor. Austria. '8317-319 1*
830 Eagles ;8413-41S

(£185^4-18614

(£95V96U)

(£4834-49 U)

(fil9i«-S0l4)

(£185U-10634)

(£431* -43*4)

(Ctote-SOSf)

(£50 14-503»)

(£4014-411*)

(£22114-9881*)

(£17634-178te)

(£92834-8311*

S327-327**
8168 >*-1691*
895*4-8634

835-36
8387-328
976 >4-7634
8891* -91
889 1* -91
871)4-731*
83911* -394
83111* -314
8408-413

(£182.1821*)
(£9334-3414)
(£473, AS 14)
(£19 1* -SO) .
(£182-1821*)
(£421*-42J,)
(£50-601*) .
(£50-601*)
(£3934-41)
(£218-2 19tel
(£173 1* -17454)
(£327-830)

Tin — Morning: Standard, cosh £6.620.
15. 10. three months £6.570. 80. 90.
6,600. Kerb: 5undard, three months
fiBtoO. Afternoon: Standard, cash
£6.600. three months £6,580. 70. BO, 95,
90, 80. Kerb: Standard, three months
££,660. 70. 80. 75. Turnover, 1.715
tonnes.

July

.i B77-78

— 9.0 J

878-65

Sept.

. 901 02

-11.0|

907-92

., 941A2

-12.01

945-33

March.....

., 977-78

-10.0:

980-68

May..

.' 995-1000

-15.5

1000-95

July

JO 18-24

-10^)1

1020-18

Sept

, 1040-44

-6.5 :

—

, ajn. t«, K~tn. + or 7151 (71.67).
LEAD Official ' - -Unofficial -r

Seles: 3.879 (2,397) lots of 10 tonnes.
ICCO— Daily price for June 7 70.56
(71.62) indicator price lor June 8:

July ! GZ.1ILE2to| 52.30-52.901 —

AUB j 62.30 -Mtoi 52JJ0 &3J0| -

Jly-Sept, 6Z.sn-52.60 52 JO S2.4B1 62.80-62. 5fl
Oct-Doc! B3.88-SS.90 B3.7C-BS.S1 M.M-55.80
Jan-Mar. M.00-G6to B8.IO-5S!»LsBJB-58.ja
Apl-Jn*' B8 JO-58. 10 5B.Sa-S8.<U M.10-S8.00
Jly-Sept' f f i„2a-60.&': 60.30-88.48 —

Oat-Dec B2JM2.38 -

J’n-Mch'B4.IB-64.S0| W. ID-64.20! -

Coffee FY Sept
Cotton AJndex
Gas Oil Ju1y._..
Rubber (KUcl...
Sugar (Raw),...
Woolf pa 84* icf.l

r9

t £1138.5
L 75.65c
•295^5
. El.Bp

. £101u

397p kilo]

tUnquoted. u June -July.

June. yJuly. fPer 7Blb fiaak.
•Ghana cocos, n Nominal. §S»Wbt. ■

-9

ti 1

LB 10 17

£996

July 128.50. Aug 127. Sapc 127. Deny
Dee 128.50, Jen/ March T35 seliera.

ROTTERDAM. June 7.
Wheat— (U.S. S per tonne): U.S. Two
Dark Hard Wfmer 13.5 per cent, July

179.50. Aug 180. U.S. No. Three Amber
Durum, June 178.50. July 178‘ Aug 181.
Sept 184, UA No. Two Northern
Spring 14 per cent, afloat 181, Jane

178.50. July T70, Aug 175. Canadian
Western Red Spring, June/Sept 200.

LONDON NEW ZEALAND CROSS-

416, .420, nil; May 436. 430, nit" Aug
432. 436, 434; Oct 434, 438. nil; Dee
438. 441, 440. Sslee: 2. _

PARIS, June. 7.i r
Cocoa (FFr per 100 kilos); July 960/-
990. Sept ) 030/1045,. Dec KW8f1074i
March 1115/1125. May .1146/11 to July
.1175/1185, Sept 1220/1230. Sslee-.tt
calft Nil. ■

Sugai^-(FFr uar tonne); July 1415/
2^'.. Au 9 1427/1428. Oct and -.NtrY.

j£ 1144.0 B REDS— Close (in order: bu'yer,"sefFe _ r. ”5St«S^

aaf». *— >• "-a— cjs r vi, sa “ a L,i!T M6 - ■**

■■ 1.2

Sr s-

'kiK
kltwn
bi isr
Stsi
bnjs
Crc* ‘

(Kit =

Irsa f-
Kiil
! *m c
fc*3

(.- Ir.-..

t

IwOi

a 'A

?PS

teeirj

'

te 5-
’*! M

S*CQ.:
9MC 4 ;
am Oi
teCaw
— 03 14

*** D*

r-

■885
53.5p
....„..:Uii8

COTTON

399pkllo

wMay-

UVEflPOOL— Spot and BJvpfrvani
sates amounted In 123 tonnes. A slow

42.5 to 53.0, 120-1® lb 38.0 to 59r& ,
MEAT COMMISSION— Average Fat-
stock prices at representativa markets,

movement of supplies continued. With- wr , lw

..nu .1 ; „„_1 — i — ■ GB— bheep 1 57.81 p per kg asV dew

£

2B5-6
297 .5

f + 1

LONSON METAL BROKERS

Financial Status & Perfor m ance
Comprehensive derailed financial
analysis ol London Brokers lor
50/BI is now available from:
Financial Intelligence & Research
143 Uxbridge Road
London W13

_ SSS* 1 ’

oLtwm. LONDON Owed Sunday

«>-n*JPNE AdnrisMM £2

COMMODITIES

The newly published Chesham Commodity
Report provides definitive answers to the 15
key questions you should ask your broker to
gain the most profit at least risk.

For more information -please return the
coupon or telephone 01-235 4766.

| Tog Chediam Fhtanchl Refetewt l Jml f ^
| 11 West HaB dn Street,

London SW1X8JL.

Name-

Address.

I

•23-7 I

; £ : c

Caah 288.5-9 ,+8

3 months. 300J5-1 -9
Setttom't! 289 1-rB

UAJpoS . - ....

Lead— Morning: Cash £289.00. three
months £29550. 98.00. 99.00. 300.00.

301.00. 300.5a. 301.00. 300.00. 300 50.
Kerb: Three months £300.00. 301.00.
01.50, 01.00. Afternoon: Three months
£300.60. 01.00. 300.50. 299.00, 98.50,

38.00. 97.50. 97.00. 97 50. Kerb: Three
months £296.00, 95 00. 93.00. 94.00.

95.00. Turnover. 12.025 tonne*.

Sales: 97 iota of 15 tonnes, ml lots
of 5 tonnes.

Physical closing prices . (buyers)
were: Spat 51 top (same); July 5f.00p
(same): Aug Sl.TSp (urns).

COFFEE

Alter commission house selling had
produced an easier opening values M

recovered to settle in e narrow range, OOYAoEAN MtAL
reports Draxel Bumham Lambert.

” Yesterday's; "

COFFEE Close -+ or

Business

Done

1C per tonne!

ZINC

i a.m. ; + or,
j Official . — Unofficial i — t

July 1201-08 t— 8.0

Sept, • 1138-39 =—2.0

Nov— I 1094-95 |

January , 1080-82 1+0.5

March..-...; 1064-70 +1.5

p.m. -for May -I 105D-67 l + LO

1203-91

1142-30

1100-90

1080-79

1070-61

1060-54

A slightly higher opening was due
to commercial eupport and short-
covering, reports T. G. Roddick. Prices
remained eteedy and late professional
buying saw the market close on the
highs-

July.... il ,....i. 1048-64 J-0.5 I -

! £ : .£ I

Cash ; 395-6 :+6 ;

3 months 396.5-7 +7.25.

S‘iaent.J 396 +5 — I.

PrlmWtsi — ! *35-37.7S|

£ £
391-2 1+5
3B1-.5 +2.75

Sales: 2,362 (2,401) lots of 5 tonnes.
ICO Indicator prices for June 4
(U.S. cents pe- pound): Comp, daily
1979 122.43 (121.64): 15-day. avorage
119.84 (119to).

Zinc — Morning: Cash £397.00, 96.00.
three months £368.00. 89.00, 90.00,

91.00. 82.0Q. 93.0a 95.00. 35.50. 97.00.

96.00. 96.50. 97 to. 98.00. 99.00. 97.50,

97.00. Kerb: Three months £397.00.

96.00. Afternoon: Three months
£395.00,. 95.00. 94.00. 93.00. 92.00,
BQ.QQ, 91.00. Kerb: Three month*
£390.00. 89.00. 88.00. 89.00. 91.00.

90.00. BUM, 92.00. Turnover. 19.600
tonnes.

Yoaterdy»'+ or
Close | —

Businas*

Dane

June,

August. —

October

Dec.

Feb

April

£ i

per tonne

128JD.2a.fi' + 0.1 B
129.4D.Zfl.fi; +1.10
i5a.40-sa.5|+i.?a
183.78-34 JD'+l jza
156.70-37.0:+ IJfl
I37.80-S6.0i +0.66]

128,20
12S.60-2B.8D
150 JO-23 .80
153 JO-32 JO
lBBJSOJSto

GAS OIL FUTURES

The market opened about S4.00
higher on the. unrest in the Middle
East before easing back in light
volume. A- llmit-up opening in New
York led to a further rally and the
market remained steady, reports
Premier Men.

;VwfdM'«i + o'r] - Bushinas'
does — Done.

Month

Salon: 140 (346) late of 100 tonnes. -

SOYABEAN OIL— -The market opened
S2.00 higher, remained steady until
moving higher with a late rally on short
covering. Closing prices and buslneea
done (U.S. S per tonne): June 499-520.
(intruded; Aug 496-97. 493-91.50; Oct
496.50-98. 496-92.50: Dec 503-04, 502:
Feb 508 5-07. 506.50-03.50: April S11.5-
12. 512-10: June 513-26. untraded.
Sales: 95 lots ol 25 tonnes.

"INDICES'

FINANCIAL TIMES

June 4 1

June 3

M'th afla|Var ago

229.79 |

[230.10

I 243.40 | 261.39

(Base: July 1, 1952 - 10Q]
REUTERS

June 7

Junes

M'th ago

Y'arago

1508.8

151

1580.7

1762.7

(Base: September 18, 1931 ■■ 100)
MOODY’S

June 4 | June 8

M'th ago

[Y'arago

984.7 | 987 Ji

100BJI

! 1083.7

(December 31. 1931 - 100}
DOW JONES

Dow

Jonas

Juna

4

Juna [Month
3 . (ago

Year

ago.

Spot

FutrY

122JM

122.73)125.42
1Z2 -831129.56

(Bass,- December 31, 1974 —

100)

Sales:

3,424

(3to7), Iota

ol 1

out signs ol increased activity among
buyers: Interest w« mainly m
specialist qusJiires grown m the
Middle East and North American types.

f“23A7). GB— Pigs 6B;83p pe/.kg iw'

JUTE

JUTE — C and f Dundee BWC 1388,

GRIMSBY. FISH - — Supply good,
demand fair. Prices n ship's side
(unprocessed) per stone: Shelf, ’.cod
£3.50- £4.60. codtings ' £3to-E4.0C:

BWD £243, BTB £32S, BTC £2B0. BTD .mKlium haddodt ,E3.7Qto30. emit!
£24 fe Antwerp c end f BWC CB8, BWD E1.80-E2.80: medium plaice £4.e>£5.20,
044. BTB £330, BTC £291, BTD £247; ^ esT s* 1 ”* 1 E3.60-E4.20; isige aWnned
-c' -and f Dundee June 40 m 'lO .or dogfish £5.00. mediunr-' £3tor large

£10-89. 40 in 7»a oz £8.35; B iwiMa
£33.31.

TEA AUCTIONS r

LONDON TEA AUCTION-— 27,244
chests were on offer n yesterday's
suction including 4 00 offshore. A good
demand prevailed. Brighter Aessms
were firm to dearer but others were

lemon soles £8.00. medium £6.(50;
.rockfish £1.40- £2 to; aaitha £2.00^2.70:'

- COVEWT GARDEN— Prices . fbf the >
bulk ol prcduco. iri sterling per package ..

where otherwise stated,
imported Produce: Oranges— Cypriot: .
15 kg Valencia Lates 3J20-8JS0:. Jaffa:
20 kg Valencia Late* 56 6.25, 80. 6-25.

75 6J5. 88 5 to. 105 5.5a 123 4.85," 144
?-®0. 168 4.50; Moroccan;. . T8 ’ Trg

Africans were well competed for and
gamed severe) pence, mediums were
forty firm. • Plainer Centro l . Africans

span-. Naveta 40 5J2S. 48 S 25, 68
™ 5 -®: 88 1 4.85. 112 4.25. 138 .'3.6a
150 3.30. Lemons — Spenis: trays-' 5 kg

emne to e fewer maricet. Ceyfons were mno TmTao-. hHh,- -ia
.firm to dearer, with quality BOPF's ' 12*

ar leaf so^T toy' o 2fV 0: »S' it ? paB: l 5 ** k *> «/»«*.

J. Tire ■ JZSa S' 2 ?- U S - : 16/17 kg Florida

SO

a dearer feature. Poor

qusnWy -evmiaSlt^^in the^offshwe l? 1 kg 3^1^ jaffe-°ai
suction shcwied a dearer tendency. ® k * Z7 _ 4 ^ 1 ®

Quotations: qusCity 127p'a kg (i27p). ‘

medium 108p a kg ,(1C8p). aj 9 * 4? j

: ‘ ' 4S» lro?56'4S: 4 fci.

POTATOES Ruby- some-sa White. Appiee — French:

irnmnsi wiTsm orTlra „ ..... . - Golden Delicious 18 fcg 8to-11-50;
i£f rf’Sm Teemanten: Golden DelidousVfY.OO- .

grsnutetsef basis white sugar.

Alumlnm | am, + or p.ni. 4- or
Official j — 'UnofDcIfUl — t

i f (Mi ■ j J

‘per tonne ]

June ! 297.00 ;+7to^87.B0-92to

July„ j 296 JB5.

bi»3*4*S» { 355-S

B months 633.5-4 +7 1 633-.S [+6 1 fgf'io

— — 1 — nov_..'!""LJ 297I00

Aluminium— Morning: Cash £513.50, Dec-. I 300J»

14.0a three months B3fto, 32.00, J *n_ 30L50 ,'+7j® —

32,50. 33.00. 34.0a. Kerb; Three months Feb j 303-80 r+7tol --

Pto^to.^.oo^^so, 3 ^. Sft JJ 2 -* ’' 7 « < 1 - ra3 > - ta “ of 100

noon: Three months £538.00, 37.00,

+ 9JW|295.26-SaM
+ 8.7BSS5jO-BBJD
+ 9 J 5 l 2 M. 50 - 8 a.U 0
+ 7to|296J»-S1.aO
+ 7.B%297J»-944«
+7JWHH.DD-S6A0

SUGAR

Initial trades wore around pre-
-waekend (swrts but saU-ing imerest was
lacking. Prices rallied before hnvior
oRorlngs blunted the advance, reports
C. Czamlkow.

No. 4 |

Yesterday

Previous

Busin esa

Ccn- j
tract 1

dose-

dose

dona

£374,000 (same) e tonne fob tor Moms
trade and £206.00 (same) for export.

International Sugar Agreement (U;S^
cents per pound), fob end stowed
Caribbean ports. Prices for June 4:
Daily price 6.97 (7.22): 15-day average
7.67 (7.73J.

LONDON DAILY PRICE— Raw sugar
£101.00 (seme) e tonne cit- June -July
shipment. White auger deify price
E13ao0 (seme)..

optimism for good yields, which English Produce: PoWtni n~~Po 'r 65 lb
resulted in prices easing rapidly. Book- White 5.00 Red 4 80.5 SO Kina Edwards

Ld.^ trcdo 'ii,^,, MS) . -

.SSL, - * . teite^ne-^er' pound, open 0.3(W>to.

»3ui«n«=aiK= grains’ to

■n..-. ^ crop wheat led the downward -trend- March 124toJ4toil|SJ5-75ja 12S AD-32.0S 541,0. 542.0. imtreded: JnW -548^. heavy 70JJ to 72.0: ^**Vo*' T *** -f 1 er An z .pack -0,50-0.70.

ThfM montte New crop* wore eteo cold <JH »wth May... 1
Afternoon: wheat being more affected, Adi

Tltree months £2^5. 30. Kerb.- Three- -reports. - : Uw «uu nnlui mlm k

SYDNEY
order:

iWoSrturss azsifls w

JSSt is? -fi»

8 2.90 ): May 94.3a -1.40 (higfv gSto £* r . fi6Jb - 4° /B0 mm iOO^Ito, vS*»dnB
low 33.00). Turnover 181 (97? ion ol 9 " ^°* ‘ P ^T bunch 0.1S. Spring
40 tonnes." • p * tab , g* ~ t,eT 25-nti -Tto-1 .50, C m i o te— . -

Per 28AB-fb 3.80-4.00. Beeboott-rPer

MEAT/FISH g-fb-,- round 1.00-1.20. lony -iao.

SMFfHRELO— Penee per pound. BMft- ,°^ d ?2 r

Scottish killed sides ao!a to to!fc ^ Cam T b *5EZ

Enafteh bindauartere 38 5 irvTn il *’ Green*— Rer 30-lb

WOOL FUTURES

f GREASY WOOL— Close (iri Engf^W^quartereto^ w i02j) r for^

buyer. edler, .hteC'ffl!!." 1W u *-ter hfn ^ .W.W^S3SSSS^StX :

Oet^...!liSJ 0 -MJU| 131 .n- 32 . 7 fil

V

.A

: Fisanriai;^ Tuesday June 8 1982

Coapaam ud Market*

31.

INTERNATIONAL COMPANIES and FINANCE

to U.S. group’s $60m bond

ie

So

Wr

0:

-"'.s'

J-.c.-.s i

3 J *Por£

U-r

& •c5.?iii iBa 4

inoij;. ‘ «JL

i..

* 6

.’•^ ilc

• ..

>«|W.

Jc

\

■ ' i* V

•A /

as prices

--‘Cl

pktq.;' *

' BY ALAN FRIEDMAN

THE : MicMgauhbased gas 'pipe-
line ^wy, Aa>eiicaiL Natural
Resources, which last WedneS: :'
day Taimcbedra 4560m seven-year
Eurobond : . through • Goldman .
Saehs; withdrew the issue last
night ' - .

-The decision to withdraw the.

bond waa made fkrring a day

which .saw Eurodollar bond
prices marked, down, by up to
one. point Euro D-mark bond
prices were off 4 point and Swiss
franc foreign bond .prices- fell
by axointd.it point
Mr: David Watkins, a viec-
president of -Goldman:. Sachs,
said tbe 15J per cent dlscomit-
priced : American . Natural
Resources issue was withdrawn
in view of the state of the

market u The company and

Goldman Sadis have decided ter
postpone toe issue due to ex-
tremely nhsable market condi-
tions," be 'Said.

The current market would
not allow “a successful place-

ment at realistic ' levels;"
according, to - Mr Watkins.
MariQGt managers believed that
.only 25 per cent of the paper
had been sold as of yesterday.

The Eurodollar market suf-
fered one of its worst days in
weeks yesterday as investors
stayed away and dealers simply
moved paper off their books in
order to avoid, losses. Dealers
appeared- to be . . circulating
paper to <me another, however,
a practice whidi <me described!
as " unhealthy.” t . . .

The reasons for yesterday’s
sharp- markdown are the same
which plagued the market last
week: uncertainty over dollar
interest rates, the continuing
U,S. budget, impasse and the
burden of around $lbn of
unsold paper which has piled
up during the past few weeks. -

Eurocurrency deposit rates
all moved higher; the six-month
Eurodollar rate closed at 14 If
per cent, up A. The i^auric

rate closed iV per-cent higher
at8H per cent, while the Swiss
. franc rate closed f point higher
at 5*2 per cent
The 575m LASMO floating
rate" note and sterling warrant
issue was launched as scheduled
by Goldman Sachs — the only
new issue of the day. Canon’s
$50m convertible continued' to
do poorly, selling at a discount
of 2 J-3 per cent
In. Frahkfort, Deutsche Rank
has brought the City of Copen-
hagen to market with a DM/75m
ten-year issue with a 9} per cent
coupon priced at 994 to yield
9.33 per cent Deutsche Bank
is also lea dong a DM 75m pri-
vate placement for Renault; the
coupon is 93 Per cent atpar on
this five-year paper.

In Switzerland the Export De-
velopment Corporation of
Canada is placing Sw Fr 100m
:to Sw Ft 150m privately through
Swiss Bank Corporation. The
64-year paper bears a 64 per
cent coupon.

Sweden loan package increased

BY FVtm MONTAGMON, EUROMARKETS CORRESPONDENT

SWEDEN has introduced a new
5300m tranche to toe loan pack-
age it. is ' currently' .arranging
from international banks,. bring-
ing total TOlue of the package
tofUlm. ......

Unlike .-toe original 5800m
portion, winch is priced over
UJS. domestic : rates, the new
tranche is linked to Euro-
currency deposit Tates. It bears
a margin over London inter-
bank offered rate (Libor) of. 3
per cent for seven years..

Lenders . may, . however,
choose to extend toe facility for
a further three years, in whidi
case toe margin rises to 4 per
cent The new tranche is co-
ordinated by Chase Manhattan
and Morgan Guaranty, but bears
a strong Japanese flavour. -

Co-lead. managers' are Bank of
Tokyo, Dai-IcM jKangyo,. Mitsu-
bishi Bank and Sumitomo Bank

which win act as agent There
is also a seven-strong manage-
ment group comprised entirely
of Japanese banks.

The new tranche enhances
Sweden’s flexibility as to source
of funds. It is. a multi-currency
facility that revolves for the
first five years. The previous
5800m portion also revolves for
the first four years.

- ‘ It thus offers Sweden a con-
siderable choice on timing and
nature of drawdowns in indivi-
dual currencies, which effec-
tively offsets some of the cost
of borrowing over the expensive
U.S. prime .and certificate of
deposit rates. ! " •

Sweden will pay a commit-
ment fee of A per cent for the ■
Eurocurrency portion. Repay-
ments vnH begin after five years
on the basis of twice-yearly
payments of 10 per cent. - If

lenders decline to extend toe
loan, 60 per cent would fall due
on maturity after seven years.

The 9800m portion of the
package has already proved to
be one of toe most successful
Eurocredit operations this year.
Also co-ordinated by Chase and
Morgan, it was raised from an
original 5500m because of heavy
demand and provides-for a mar-
gin 9f 4 per cent over U.S. prime
rate. Lenders may also choose
at toe outset to lend at margins
ranging from 80 to 85 basis
points over the adjusted rate
for 90-day certificates of deposit

The success of toe transaction
and toe introduction of a new
Libor tranche reinforces* toe
suspicions of many bankers that
European credits are being
favoured at toe moment because
of toe disarray of the market
for Latin American borrowers

FT INTERNATIONAL BOND SERVICE

The list shows the 200 latest international bond issues for which an adequate secondary market
exists. - For further details -of these , or other bonds, see the complete list of Eurobond prices which
will be published next on Wednesday June 16, * Closing prices on June 7

U.S. DOLLAR Chmsaon

STRAIGHTS ' Tssund . Bid Offer day wMfc YMd

Aetna Ufa IS 88/Sr ... . 150 TOOSIOP, -0% -1H 1 43*
Amax Iht. Hn< 16VS? 7S
Amex O/S flft. t*H 89 35

APS Fm,Co. 16Y89'..: “®-

ATT 14H 89 - — ^._v. <l00
Bafcor Int Fin. . 0.0 52. 225
BHP Finatrea 14H 89 — ISO
Bk. Aoiar. .HT SA 12 81 200 .

Bk. Montraal X4H-87 — '400.

Bqutt. Indo Snar 15 -89 -TOO

British Col. Hyd. 14H89 200
Burro us ha lot.. 15% .88 .50
Canadnir 15% 87 150

Canadian Pac. 14% 32. 76
Carolina Power Ip* 89 SO
CIBC 16 87 -.. — — . 100
Citicorp 0/S 15 84/92 100
Citicorp .O/S IB** 85/97 125

CNA 15 7 * 97 75

Con. Ullnoia 15H 89 ... 100
Duke Pwt. O/S 15*1,89 60

Dupont O/S Cap. 0.0 90 JOO

ECSC 14H 87 i 60

EIB 15V 89 150

EVsponflnana 14** 89 ... GO
Gen. Elec. Credit 0.0 92
Gan. Bac. Credit 0.0 93
Getty Oil int 14 89 ... —
GMAC O/S Fin. 18 88 150
GMAC O/S IS*, 85/97 100
GMAC 0/5 FJn- ?5 89* 126
GMAC O/S Fm. 16 87' *K»
GuH Canada Ltd 14\92 100

Gulf 01! 14>, 94 *.._ 175

Gulf Oil Fin. 0.0 92 ...

Gulf State* O/S 18 90
Int-Am. Dv. Bk. 15*, 87
Japan Dev. Bk_ 15*i 87
Now Brunswick 1R 89
Ontario Hydro 14V 89-.

Pac. Gan & El. J5U 89
Pac. Gaa & El. 15*2.89
J. C. Penney Gl. 0.0 94 350
Philips Petrol 14-.89--..-.200
R.J. Rynlda. O/S 0.0 92 400.
Saskatchewan 18 89 ... IS
Shell Canada 14* 92 ... 126

Spain 1» 87 100

Superior O/S Hn. 14 89 125
Swed. Exp. Cr.. 151. 89- 100
Swed. Exp. Cr. 14* 90 100
Swed. Exp. Cr. ‘0.0. 94 200
Union Carbide 1*t»- 89 1»
Wells Fargo I- F. 15 87 55

World Bank 1SV88 ...

World Bank 14V 87

400

400

125

300

60

55

60

75

150

80

45

290

500-

TOt*102V -2V15.82
9«k ;9S>4 7<ft -*1^15.117 .
WTV WV ~0^' *17, 15 JO
101*. 102?, -0»* — I*. 1X77
t25*. Zft -OV -1\ M-TO
. 97^ 96*, -OH -0*. 1542
91V an -0** -2. 14^3
.97^ 88 -TV IS- 17

97S S8*, -0*, -£P, 15.51
96*4 98V -OS -2V 14J7
102 102*, -0*. -I^i 15U9
100*, 100*, -OH. — 1** 15^2.
97 97*, -0 s . —2 15.17

10I 7 . 102*. -0*» -2J, 15J0
•101 101*, -0*. -1*,^I6J5 ••,
99*1, KXA, -0*. — O*. 1492 ;
MW. TOO*. —0*i -1VTS-16
9» TOCPa-OV-HtlS-W
101*, 101*. -OH -\V15JS .
99H 100H -1H -V, W 50
36 3SV-OH -1H 1495 ..
98H 99V^-0H -OH15.05 .
99H100H -OH rr1H1R48
97 97*z-OH -IHTS.tt

27 27V-0V-Z*, «45

24H 24*. -OH TlV14ro -
97H 97*» —OH *-1H 1A5S
TOlHIOin -0*1 -1H1SA8.
98H 99H -0*i VI 15.70
97H 97H -2 -rlH 15.0 •.
97V .» —OH ->1 15.67
98\ 99H -OH -1^ W*t. ~
98H 9BH 0 -1 14.90
26H 27** -OH -1H 1A39
99*, 99H 19.11 .

9BH 9BH-0V-1H1B9*V-
102*. lOZn-OH — iH 14.62
102*» 102*, -OH ~2H 15^7 '
99*. TOOH -OH -1H 14.70
102VICSH —OH —OH 143«
101 *, 1C2H -OH -1H 15.00 _
20H Z1 -^OH -IH1430 .
95H 98H — OH — 1H 1495 /
Z6H 27 -0H -1H M36
102*4 10BH -OH -IV 15X1 •
97H 38 -0H-1H14X1-.
99V1O0H +0H -OH 16.74. "
94H 94H — — 15L3S --

. 9BH 99H -OH 'I 1BAB
9SH 95*. -OH -IV 15.74
20H 20H O -1H 14-37 .
99V 9BH “OH -IV 14^8 •_
9SH 99H -OH -2H KOS
99V 100 —OH — 1V1626
96H 97H -0H -ft 1B.1S- ..

ID DOUR l-rq V* __ a

Averwgo price change*— On day -0^ on week —

DECTTSCHE MARK /

STRAIGHTS _ ■ BW (Mter

Asian Dew, Bank ftK ISO MH

Australia 9H 9t *»

Australia 9H 91 ^

Ba relays O/S ln.-BV94 «0 96H

Canada 8V 89 200 WTOI

Comp. Tel. Esp. 1DV92 10O 1C&, WH

Cred. fonoer 8H'92 ... WO ,. WV *«

Denmark 10 88 W WIOrH

Danmark 10H 92 , 100 10tH

PDF 8*, M -100. 100H101H

EPC 9*4 94 200 • -1G2H 1®3H

EIB &H 32 . - 100 96V 97

Int-Am: Dev. Bk. 9 92 ISO-. ,;®H

Ireland 10V 86 — ^

Uacnl. Rnanclera 11 90 ISO J*&H

Nat. west. . 9*. 32 1»

nifB 9H 86 — * — WO WftlW

Philip Morris 8V ». — If®

Ouebec 10V32--— - 1»

Renfe 10 92 WO • 99H woj,

Tauameutobahn SH 94 SO l^i.^H

World Bank 9V 89 WO mm

World Bank 8V 92 2M 97H Sft
. Avaraaa price .clumgea .. On day —OH

day week Yield'.
-0V -OH 934
-0V-0*. 838
-OH “0*. 835
_ — 938

-OH O 836.
0 —0*4 1029
^ 8.08
■ O' —OH 930

— 0 0 9.79

-OH -OH 9.72

0 -OH 931.

— • 830

-OH -0V 9.15

0 +QH 938 !
. 0 -OH 11«
+0V -OH 9.17
-0*4 -OH 835

— — 839.

-OH -OH. 846.
-OH -OH 10.02-
-0V -OH 935-
+0H +OH 9JO

— — 8.83

onweek,— OH ■

SWISS FRANC

straights

Ait- Canada 8H . 82
Asian DWi .Bsnk 7 S2.~

Aucaloa 7H 92 —

Australia 6V 54
CM. Nat I’EnBJS** 1 92
CFE-Mexico 8V 92 — ■■■
Cchoo. Denmark 9H. 92
Crown Zellrbch, 8H ®
Eiiroparat 7V 32. .
First City: fio".

Ind. Fond Finland BH.92.
Kobe City 6HM .
Kmnmunlane 7V 92^.. ..
Manitoba 7 92
Mitsui OSK 6H92 W
riaiional Pwr- Co- S K
Nippon T. and T.- BH 92
0KB 7H .32 — rr---—:
Ost. Posapar ..7V * —
Philip Morris 6V 92.*.*
Philip Morris 6H 9* —
Quebec 7H 92 — .......

Rente 7\ & jzrsrxz::
Sekisui Pro- CT S 2
Sac. Lnt. «te Cnt 8H«2
Varsribafg Kmfr BV 32

. Change bn

issued Bid OHw day weak Yield

100 101. 101V — ’ • — ' 5-P9

100 100H100H — ' — .631

80 9BH 89H —OH +&H 730
100 103H 1°3V -flB » +6H 0-06.

100 1MV 1WH “«i “QV; 5.77 ;
SO 99 99V -OV'+OV 938
25 104H1« -OV -OV 7.6*

100 KB IWV^OV O 635
100 K»H1Q2 ,55* .

2B 1Q3H104 . +0V +0V .

30 98V '99

100 1WV101V -2.- 5W-

35' 101 WV+OV+OV 7.09
100 ' 105 HR*, .-OV-OV «37
100 -100H101V —OH —OH -.636
SO W 104V ,0 +0H 738
100' 103V 103V 0 «H 5.15-
100’ 10* 104V -PV “OH 7.14
KJO ' 10* 10« O' ,+OH 3 90
WO 10* 104*4 +0V-0V .^06.-:
100 .102 • 102V — ' — --.MO

iw' 106H io5V— ov +0V «.ra .
80 . WO . 100V 1 — . 7.7S

70 ’10*H105, o +OV h.n
•80 106H107 +1V*OH 700

50. W2HKBH -0H +0V 536

Average price changes.^ On day -0*. on weak +OV

vai STRAIGHTS issuoif Bid Offer day. weak Yield

aSSp Dev ™ 15 H» 101 +0H+0V 8.-16

Sa^Tsvaf:: t -A Sr

5SridS.S8VS2.~-.. » 98V 100 +1 V-I7.M2

Avans* price ebano**— On day +0H «* w**8 — OH

■ • Change on
Bid Offer day week' Yield
196V 96H ■ — • — 1631
198V 98H “OH -1 18.72
U9V «. -OH -1 T7^Z
WRV ‘99V -OH —I - 1733
1981, 99V 0 0 16.74

|98V » — —16.75

197 9ft 0 -OH 1730

tatp, 90*, -ov -ov n30
98V 99V -OH -OH 10-12
3BV 99V -OV “OH 1036
100V 101V “OV -OV 1037
S3 99V — —10.67

W0V101 • 0 -1 1033
. 9BH 99V -OV -OH 1030
32V 93V -OV —OH 16.75
91 V 92V -OV-OV 17.86
96 97 +0V+0V1537

88V 90V .0 +0*4 16-51
93V 9*V +OV +OH 14.33
95V 95V +0V +0V 1A51
•9SH 96V +0H+1- 16-11
93 94 +0V +OH 14.02

98H 98V +0V+0V 14.66
■94V SSH 0 +0*4 1537
7Q2V 103V +0V +0H 1436
103H104V 0 +1V 15.60
HBH 99V+0V +0H1434
100V 100H O + OH 1539
98V 99V +0V +OV 14.19
95V 96V 0 0 1130

8*V 93V-0H-ffl.TI.54

Bid Offer C3teOcpnC.yM
98*4 98V .15/10 15.66 1533
99 99V 29/10 16V 1534

98V 99V 10/6 13V 1338
99V 99V29/W 15V 1SJO
S9V 90V 28/10 15 15.08

99V 89V 27/7 16V' 1631
9&V 99V 21/10 15% 1533

98V 96V 11/6 1432 16.02
90 98P* 14/10 « 16.12

99V »H 2«/9 153* 1533
9SH 99V 1/10 16 16.06

98V 98V 9/8 14.69 1439
9BV 39H25/8 15 A* 1535
96 . 98V 4/12 15 1537

98V 9»V 12/11 14H 1437
198V » 25/11 14V 1434

99V 99V. 6/17.1531 1539
99V 99V 29/10 T7V 17-21
96V 887, 29/11 14V 1433

98H 99V 12/8 14H 14.77
99V 99V 15/7 15.19 1538
99V 100 7/10 1536 1S30

99V 99V 1018 16.06 16.16
89 . S8V 2/12 14.19 1439
99 89** 17/6 1«V 1438

38V '99V 23/9 16H 1533

99V S9V 24/11 TC 1536
99V 39V 1/9 1531 1531
98V 99V 18/11 14V 15.01
«?H 100 9/8 18 1634

99V 99V 28/8 1531 15.41
98V 98V 11/8 16V 16AB
On day 0 on weak 0

CONVERTIBLE . Cmr. Cmr; • CJ»B.

"BONDS date price - Bid Offer day Pram

ARnomoto 5V 96 7/81 933 W V SSH -Z v 2.49

Bow Valley Inv. 8 9S ... 4/8123.12 99 100H -OV 53.60

Bridgeatone Tire 5V 36 3/82 470 82 83H -OV -3.04

Canon «V S6 1/81 829 57V 89V -4V A75

Daiws Sees- 5** 96...... 12/81 5133 W B8 O - 9.21

Fujitsu Panuc 4H 96. 10/815661 86 88 -3V 736

Furukawa Elec. 5V 96... 7/BI 300 90 31H -3 -5.19
Hanson O/S Fin. 9V 96 8/81 138 184 95 0 -8.11

Hitachi Cable 5V 96 2/82 515 85V 87** -3H 136

Hitachi Cred. Cpn. 5 96.7/81 1812 81 83 +3 1331

Honda Motor 5H 37..;.: 3/82 84» ■ * 79% -80S — 3V —23*

Inches na 8 SS 2/81 435 158V 60 0 1BA2

Kawasaki 5V 98 9/81 229 81V 62V -1H 2.83

Marui 6 98 7/81 SWA 101V103 -2 0.82

Minolta Camera 5 86...10/81 826A 81 62H -OV 2039

Minorca SV 97 — 5/82 8.16 188** 87H -OV 3534

Murats 5V 98 7/81 2188 6&V 57V -IV 11-79

NKK6V96 7/81 188 72 73H-4V-22.il

Nippon Chenri-C. 5 91—10/81 919 82 64 -1 15.68

Nippon ElBcirle 5V 97... 2/82 848 83H 60V -3H 1.78

Orient Finance 5V 37 ... 3/82 1205 91V 93H -2H 8.69

Sanyo Electric 5 96 10/81 ^52 08H 70 -2 12A9

SwnJlotno EJac. 5H 97- 3/825773 88H « -1H 3-1®
Sumitomo Mat. BV 96...10/81 298.1 62V 63V -IV 30A2

Series Bk. Cpn. 6H 90... 9/80 191 78 80 D 3235

Kunishrroku 6 90 DM ... 2/82 5B5 W1 102 0 335

Mitsubishi H. 6 89 DM 2/82. 283 90*, 91 H -IV 2039

"• *No Inlonnation availaMe pre vious . day's price,
t Only one market mBker supplied * price.

Straight Bonds: The yield Is fire yield to redemption of the
mid-price: the 'amount issued* ia in millions of currency
units except for Yen bonds where ft is in billions.
Cbanga on week— Cbanga over pries a nook carter.
Floating Rate Notes: Denominated in dollars unless other-
wise indicated. Coupon shown is minimum. C,dtB=D«e
next coupon becomes effective. Spread— Margin above
six-month offered rate three-month: S above mean
rate) for U.S. dollars. Cxpri— The current' coupon.

' C.yfd =Tho- current y»W.

Convertible Ronds: Denominated In dollar? unless other-
wise indicated. Chg. day— Change on day. Cnv. dete=
First date for conversion Into shores. Cmr. price—
Nominal amount of bend per share expressed In
currency of share at convareiqn ‘ rate ffxad "at issue:
prem —Feroentag* premium of the currant effective price
of acquiring shares via the bond over the most recent
price of the shares. 1

■ OTHER STRAIGHTS " Issued
Ball Canada IB 89 C$.„ 100
Can. Pac. S.- 18V 89 CS 60

, Crd Formier S9J^^ &.

Hudson Bay 17 89 CS... . 4t>
Q. Hyd- 1GH 89 (My)' CS 50
Quabee Prov. 16H 89 CS 50
Simpsons 16V 89 C$ 40

U. Bk. Nwy. 9V 90 EUA 18
Amro Baqk' 10 87 FI .... 150
; Bk. Mass ft H. 10 87 FI 75

. Eurofima 1CH 89 FI 50

Ireland 10V 87 FI ..— -.75
PhH- Lamps 10V 87 Fl.„ 100
-World Bank 10 87 FI ^ 150

OKB 14 » FFr 400

Sohrey at C. 14V 86 FFr 200

• Aeon a 14 85 r . 20

Beneficial 14V 90 E (D) 20

BNP 13V 91 € ........ 15-

CECA 13V 88 £ 20

Fin. Ex. Cred. 13V 88 E IS

• Gen. Hec. Cn. 12V 89 C »

Hiram Walker 1*H 88 £ 25

Privetbanken 14V 88 £ 12

. Quebec 15V 87 £... 3 5

Reed (Nd) NV 16H 89 E 26

Royal Trust co 14 88 £ 12

SDR France 15V 92 L.. 30

Swed. Ex. Cr. 13V 88 £ -20
’Eurofima 10V 87 LtrxFr 500.
EIB 9V 88 LuxFr 600

. FLOATI NG RATE
NOTES .• Spread

' Allied Irish 5V 92 OV

Bank of Montreal 5H 91 OV

Bk. of Tokyo 6V 91 CO) OV

Bk. Nova Scoria 6V 93 OV

BFCE5V 88 OV

BFCE 5V 87 OV

Caisse Nat. TeHe. 5H 90 W»

-COCE 5V2002 OH

•. Co-Ban Eurofln 5H 91_. -OV
Credit Agricole 5V 97— OV
• Credit Lyonnais 6V 97... ■ OV

Credit Nat. 5V 84 WV

Denmark, Kngdm. of 92 ®H»
Oen Norefce Cred. SV 93 OV
Ind. Bank Japan 5V 88 OV

Ireland SV 89/94 OV

- 'ksnsaflis Otako SV 82 (ft
Uoyds Eurofln 5V 93 ... S®V
Long Term Cred. SV 92 OV

J. P- Morgan 5H 97 fOV

Nat. West. Rn. 5V 9l._ §OV

Naw Zealand SH 87 OV

' Womb' Credit 5V 90 ... (ft
. Offshore Mining 5V 91 (ft
- ' PKbankeo 5 31 — OV

■ Scotland Int. SH 92. (ft

- Sec. Pacific 5V 81 <ft

Sodete Generate 5H 95 (ft

- Standard Chert. 5H 91 . (ft
'.Sumitomo Fin. 5H 88._ OV

- . Sweden SV 89 .... (ft

V Toronto Domln’n 5V 92 (ft
Ava r a ge price ch a nge*...

§ The Financial Timas Ud, 1982. Reproduction in whole
or In part in any .fonn not parrmtiad without .wrinen
consent Data supplted by DATASTREAM International.

$465m
takeover
by Warner
Lambert

■ By Our New York Staff

WARNER-LAMBERT, the
large U.S. pharmaceutical
company, announced yester-
day that it is to hoy lined, a
Saa Diego medical equipment
company for $465m.

Mr Ward S. Hagan, Warner-
Lambert *9 chairman and chief
exeentiye, said the acquisi-
tion was designed to
strengthen the- company’s
position in the high tech-
nology health care markets. -
Imed desig ns , manufac-
tures and markets electronic
medical Instruments and
associated disposables for
. intravenous treatments. It
has had sales and earnings
growth of over SO per cent a
year and is expected to earn
about J20m after tax this
year. Apart from California,
it has manufacturing facilities
In the UK and Ireland.

Warner Lambert, whieh is
based in New. Jersey, has
been undergoing a major
restructuring which has
involved the writeoff or sale
of several unprofitable lines.
Sales have shown 1 tttie
change in the . last three
years, and earnings have
been highly volatile.

The company- described the
acquisition yesterday as "a
key step in Warner-Lambert’s
strategic restructuring.”

Veba acquires
stake in U.S.
coal producer

By Our New York Staff

VEBA, THE large West
German utility and petroleum
company, agreed yesterday to
acquire a 15 per cent stake In
Westmoreland Coal, the
oldest independent coal pro-
ducer in the U.S., for at least
?32fim.

The two companies also
signed a long-term contract
whereby __ Westmoreland will
deliver to two Veba electric
utility subsidiaries a total of
220,000 - tons of steam coal
next year and 500,000 tons a
year from 1984 to 1994, with
periodic price negotiations
and escalation for cost
increases.

Under the stock purchase
agreement, Westmoreland
will issue to Veba 1.2m shares
of common stock or toe
equivalent of 15 per cent .of
the UJS. company’s Common.
shares outstanding imme-
diately after the transaction.

The price of jthe stock will
be. a minimum of $27 a share
and a maximum of $50 a
share depending on West-
inoreland’s 1982 earnings.

Westmoreland said yester-
day that Veba will pay the
minimum amount of $3&5in
when the transaction is
closed in the middle of next
month. Veba' win pay the
balance next year. .

Under the stock agree-
ment, Veba will not he
allowed to buy more than an
additional 5 per cent of the
TLS. company's outstanding
stock in the open market At
the ' same time. Veba has
granted Westmoreland buy-
back rights covering its west*
moreland stock in certain
events.

• Westmoreland . said the
shares deal with Veba was
expected to lead to a modest
increase of anticipated' 1982
earnings on a per share basis.

Australia utility
places YlObn
samurai bond

TOKYO — The State Elec-
tricity Commission . of
Victoria, Australia, has signed
an agreement in Tokyo to
place privately a • YlObn
samurai bond with a syndicate
of Japanese banks and
securities firms, led by Bank
nf Tokyo,

The 12 -year, &5 per cent
bond, priced at par, is guaran-
teed by the State Government
of Victoria, with payment on
June 16-

Proceeds of the issue win
be used to finance a project
to build a coal-fired power
station at Loy Yang, south
cast of Melbourne. •• Co-
managers include Mitsubishi
Trust and Banking Yasnfla
Trust and Banking and
Y&maiehi Securities.

The coupon on toe latest
Samurai public bend offer,
Y20bn for 10 years for Donau-
kraftwerke of Austria, has
been set at 8.5 per cent com-
pared to S per cent carried by
the last public bond of Y20bn
over 10 years for toe Aus-
tralian Government In mid-
May.

The. price ior the Donan-
kfaftwerke bond, signed on
Saturday, was set at 99.80 to
yield 8.537 per cent to sub-
scribers, compared too 99.95
to yield 8-009 per cent for the
Australian issue, reflecting the
sharp decline in the Japanese
bond market over the past
two weeks.

The Austrian issue- was
postponed from May 28
because of a disagreement
over issue terms in the light
of the bond, market’s decline
in reaction' to the expectation
that the Government win
float additional defirit-
covering bonds later (his |
year. . 1

Renter

FORMAL BID FOR 15% OF CITIES SERVICE

$1 .lbn credit supports Mesa offer

BY PAUL BETTS IN NEW YORK

MESA PETROLEUM announced
yesterday an immediate cash
tender offer, for 15 per cent of
Cities Service shares at 845 a
share.

The cash offer, ' worth
$544.5x3, is the latest twist in.
the increasingly complex take-
over battle between' Mesa, a
relatively small but profitable
Texes oil company, and Cities
Service, the country’s 20th
largest oil company.

With its cash bid for 12llm
Cities Service shares. Mesa has
now tabled two separate offers
for the larger oil company. In
turn. Cities Service is bidding
517 a share for 51 per cent of
Mesa in a S62a»n deal designed
to block Mesa’s takeover
attempt.

The other Mesa offer involves
a friendly offer to Cities
Service management worth $50
a share for the whole of the
larger company through a two-
sten transaction worth nearly
$3.9bn.

Cities Service’s management
has vigorously rejected Mesa’s
so-called “friendly” offer, but
the company's board of direc-
tors is scheduled to consider
formally toe friendly $50 a

share offer at a meeting today.

Mesa also rejected yesterday
Cities Service’s $17 a share bid
for a controlling stake* in Mesa
as inadequate and not in toe
best interest of. shareholders.
Most Wall Street analysts
regard the Cities Sendee-bid as
an initial offer which, is likely
to be increased as the takeover
battle develops. -

At this stage in the contest.
Cities Service appears to Tiave
a thin lead in that it made its
offer first, and has greater finan-
cial resources to support it,
including a $L7bn credit line.

Cities Service’s offer for Mesa
is due to expire on June 28
with a withdrawal deadline of
June 21 and a probation period
deadline expiring on, Thursday,
June 10. Mesa’s cash offer
expires on July 2, with a with-
drawal deadline of June 25 and
the proration period deadline
expiring on June 10.

But Mesa has intocated.it has
already had talks with several
as yet unnamed investors inter-
ested in playing a possible vole
in its bid for Cities Service.
Among these parties. Wall
Street believes Mesa has lined
up a number of major a£l com-

panies interested in.eito&r
acquiring seme of Cities Ser-
vice’s producing assets - and
undeveloped acreage or pbs-"
sibly, if it came to that; topping
Cities Service’s bid .for Mesa
with a friendly deaL Texaco.
Gulf Oil, and Mobil .axe toe
companies racist ; frequently
mentioned together with South-
land; .Marvin Davis’s Davis Oil,
and a number of others.

Mesa is being advised by : the
WaH Street firm of Donaldson,
Lufkin . arsd Jenrette, while
Cities Service has. turned -.'.to
two Wall Street takeover, heavy-
weights, First Boston and' Leh-
man .Brothers JKuhn Loeb.

By offering $5 less in its cash
bid. Mesa appears to be seeking
to put pressure on . Cities
Service’s directors to . recon-
sider its $50 a share friendly
offer since it would clearly be
in the interest of shareholders.

In response -to Cities -Service's
rfaHrtg that Mesa would be
stretched to xsnse toe necessary -
financing to support - a major
hid. Mesa said yesterday it has-
arranged . a $L05bn line pf;
credot with a group of' banks'
led by Continental. Illinois of
Chicago and .toe Bank of -Mon-.

treaL OT the $1.05bn, some
$550m has been specifically ear-
marked for acquistions with
the balance for other corporate
purposes.

This would be sufficient to
finance toe cash, offer for 15
per cent of Citi es Service stock.
Should toe bud be successful
it- would give Mesa a 20 per
cent stake in Cities Service
since toe smaller company
already 'owns 5 per cent of
the larger company’s shares.

Mesa also said yesterday that
it may buy more than the 12 Jm
shares of Cities Service if more
are tendered- It indicated it
would seek additional financing
to finance the extra purchases.

By: initially bidding for 15
per cent; of the company. Mesa
appears to want -to test the
response' of Cities Service
shareholders to a takeover
offer. Wall Street analysts have
compared Mesa’s strategy to a
similar ploy used by Dome Pet-
roleum of Canada when it
acquired last year. 20 per cent
of Cquoco- — a move which later
sparked an unprecedented
series of takeovers in the UJS.
energy sector.

Massey-Ferguson in new
bid to bolster cash flow

BY ROBERT GIBBENS IN MONTREAL

MASSEY-FERGUSON, the
troubled farm equipment manu-
facturer, Is deferring part of
this year’s salary payments to.
its 3,000 North American staff*

The company said that senior
employees, or those at direetor-
ievel and above, will have 25
per cent of their salary deferred,
while other employees will have
20 per cent deferred.

Refunds of toe deferred

amounts will be made in October
when Massey hopes that North
American business will again be
generating more normal c&to.

Massey said the action is
required because of poor farm
equipment sales in . North
America,' which ,caH for “inten-
sified cash conservation.”

The salary deferments affect
about 2,000 employees in toe
U.S. and 1,000 in Canada.

FLexi-Van stages growth

BY OUR FINANCIAL STAFF

EARNINGS AT Plexi-Van, the
containers and trailers leasing
group, in the second quarter
will be higher than the 54.8m
or 65 cents a share in the com-
parable period, Mr Lewis Rubin,
President and chief executive,
told the armra-l meetin g
framing s will reflect improved
operating results, plus the sales
of some tax credits and equip-

ment. “By the end of the second
quarter, we wiE have already
out-performed the ‘full year
1981 income from continuing
operations of $11.9m or $1.06
a share, he said. Net income for
1981 was $4 .9m and share earn-
ings for the year are not shown
because preferred dividends
requirements exceeded net
income.

Equity injection thought
likely for Harvester UK

BY USA wood

IT ES believed that an equity,
infusion of at .least £7nj .is.
being sought by British banks
from the UB. parent of Inter-
national Harvester UK . in the
negotiation of a new. support
package.

Last week Mr Louis Menk,
Harvester’s new. chairman, was
quoted as saying .in Chicago
that he was negotiating - an
equity infusion for harvester’s
UK operation- In 1980 the.
company lost £12m ($2l.6m) —
in 1979- It. made a profit of
£3.3m. Last year's results have
not yet been reported:

Talks with the 13-odd banks
involved in rescheduling. Inter-
national Harvester's borrowings
in toe UK are expected to be
concluded in toe next few
weeks after nearly nine months
of negotiation. It is understood
that toe £7m whidi Is • still
negotiable is - toe minimum
amount UK banks are ' seeking
in tiie rescheduling of borrow-
ings. .

Next month toe paent com-
pany in toe U.S. will represent

its new financial plan to some
200 banks. Last year to toe
banks' agreed Harvester’s debt’
restructuring plan provided
certain criteria were met. ’Here
company; which makes farm
and transport equipment, and
whose losses in the past year
reached a record $397.3m com-
pared 'with a $37 Om profit toe
previous year, stated — hi
November — asked the banks for
a. change of terms.

Last week the French Govern-
ment agreed to join a FFr 450m
. ($73m) aid padcage for inter-
national Harvester’s French
operation. The seven-year
package, is designed to keep
Harvester in business in France,
though “ at a reduced level,"
according to the Chicago head-
quarters of IH.

The complex involves 11
French banks as well as toe
Government In return.
Harvester has agreed to inject
$U.4m of new capital into the
French subsidiary and capitalise
between $11.5m and $14.5m of
debt

Ibis aravxmcement appears a$a matteraf record onfp .

REPUBLIC OF PORTUGAL

U.S. $300,000,000

’ MEDIUM TERM LOAN

Lead Managed fcy

Banco Portugues do Atlantico
Barique Indosuez
Commerzbank
Gulf International Bank B.S.*C.
Uoyds Bank International limited

Banco de Bilbao SA

Hie Long-Term Credit Bank of Japan, Limited

The Bank of Tokyo, Ltd.

Citicorp! International Group
The Fuji Bank, limited
. ; IBJ International limited
National WestminsterBank Group

fifanagadby : . - :

Banco Hispano Americano, SA
Soci£t£ G6n£tale de Barique SA-Banque Beige limited

‘ Co-Managed by

The NGtsubishi Thist and Banking Corporation . Sumitomo Bank Merchant Banking Group

Fbnds provided by

Banco Portugugs do AiSntico (London Branch) Licensed Deposit Taker
Banque Indosuez Citibank, NA

The Fuji Bank, limited Gulf ftitemationaJ BanfcB-S.C.

International Westminster Bank PLC -----

Banco de Bilbao S A

TheLong-Term Credit Bank of Japan, Limited
TheMitsubisbiTbistandBanking Corporation
Banco Central, SA LondcaBrnnch ' Irving Tru3 Company

Kuwait Beal Estate Bank KS.G - Banco Pinto & Sotto Mayor

Caixa Geral de Depdsitos Pare Dahva Europe N.V.

The Bank of Tokyo, Ltd
Commerzbank International

- ■ SodtOt- AiamyJiie

. The Industrial Bank of Japan, Limited

Uoyds Bank International limited

Banco Hispano Americano, S A
• Sbciete G6n4rale de Banque S A
• ' ; Sumitomo In temaiional FInanceA.G.
Slavenburg OyerseasBanking Corporation
BankBumiputra Malaysia Berhad
; , . . Williams &Qyn’s Bank pic

Banco do Estado de Sao P<mIo SA Larfoa Branch Banco Espirito Santo e Camercia! de Usbpa London Bmafi

’ Banco Totta ^Acores-LoodaiBranch Bank fuerAibefcund Wirtscftaft AG • Banque Noideurope SA

•Gbufis&Ca KmvaitParifcFto Sod^S&juanaisedeBanqoe

May 1982

Qticoip fotemationalBank Limited

32

Companies and Markets

^Financial TimesiTues^

INTERNATIONAL COMPANIES and FINANCE

ras h problems pile up for a Swiss eating chain: John Wicks reports

Breathing space for Wienerwald

WIENERWALD HAS been
pulled back from the brink.
Just as It seemed that its
bankers were about to call in
their loans, the Swiss-based
restaurant and hotels group has
been given a further six months
breathing space in which to
come up with a strategy for

survival.

The company and Herr
Friedrich Jahn. its owner and
founder, have until the end of
November to sort out the prob-
lems at Wienerwald. As
recently as 1980, it was ranked
as the third largest catering
group in the world, wedged in
between McDonald's and Trust-
house Forte, but now it is
burdened with weak cashflow
and heavy debts.

Although no formal decision
has been taken by Wienerwald's
24 creditor banks — who are
owed a total of DM 257m
($109ml— it has become dear
over the past few days that the
fcisk of an immediate, large-
scale withdrawal of bank
finance has been removed.

Until March this year,
WeinerwaW had been con-
sidered one of the great success
stories of post-war private
enterprise. Herr Jahn, a former
Austrian waiter, and his wife,
opened a modest chicken
restaurant 'll! Munich in 1955.
Within nine years, tire venture
bad become a top European
restaurant chain: and by 1981
comprised mare than 1,400
restaurants. 46 hotels and had
a total turnover of SwFr 1.77bn
($870m) jn IS countries.

This expansion is the reason
for WienerwaQd’s current
financial difficulties. Although
no balance sheet or profit-and-
loss account have been
published, nearly all earnings
appear to have been ploughed
back into the business. At the
same time, debts totalling
DM 257m — one-third of them
short-term — were incurred with
Swiss and German banks to
help pay for an ambitious
in vestment programme centred

on U.S. restaurants, theTourotel
chain of hotels in Europe and
the German travel agency,
J atm-Raisen.

This subjected corporate
liquidity to coosidenabde strain.
The American restaurant chains
run by International House of
Pancakes and Lums, - two
Wienerwald acquisitions, will
show a combined profit of only
$2.5m this year, wMke Jatm-
Reisen— since sold — woufld
probably ' just about have
reached* break-even in 1982
havtog cost DM 43m.

The crisis came into Che apen
in March when it became known
that two smaH German banks
had called in a total of DM 3m
of short-term debt and that
other bank creditors were to
hold a meeting in Zurich. Herr
Jahn, in America with a group
of journalists to show the results
of the group's $5Sm investment
programme' there, denied that
Wienerwald had a liquidity
problem. He added, however,
that difficulties would arise if
any further banks asked for
early repayment, and hurried,
back to Europe to put tilings
right.

New management
concept demanded

Although the company blamed
“ill-founded rumours" for its
embarrassment, it accepted , a
short-term liquidity grant of
DM 5m from its. banks at -the
end of March anfl a subsequent'
medium-term support of
DM 20m. The banks, who under-
took to extend their credit lines,
demanded a “ new manage-
ment concept ” for the group fay'
April 30.

A month proved too short a
time for the company to come
up with a new policy, though a
first step towards restructuring
was taken by the sale of the loss-
making- Jahn-Reisen and the
chickenrgrill ' manufacturer,
Wiwa . - Geraetebau. The
creditors, represented by an

eight-hank consortium headed
by Swiss Bank Corporation, con-
tinued their attempts after
April 30 to reach a lasting agree-
ment. ■ •' ■

By the end of May, however,
the consortium was on the verge
of breaking-up in disarray.
Largely because of the resigna-
tion of Hear Klaus ReindSI from
the company. Herr Reindl had
re-joined the management of the
important German division of
Wienerwald on April 1 — only to
leave again at the end of last
month. With Herr Jahn absent
in the UJS. looking for financial
backing, the consortium dis-
solved.

. Then came this unexpected
breakthrough. Although Wiener-
wald was confronted by the
collapse of the consortium and
the daunting task of negotiating
with each individual bank, . it
managed to get almost all of
them' together once more in
Zurich last week. The bankers
saw that the couqnny needed
what one of them called a
“ breathing space " to get itself
sorted out, and those present
favoured a pact on outstanding
debt until November 30, with
payment of interest but no
repayment of principal
- However, it is not certain
' whether all creditors will agree
to this; Bank votn LinthgebieL
a smaH Swiss regional bank, is
quoted in a Zurich newspaper as
saying that parts of a SwFr 4.6m
credit have been called in.

WienerwaM is understood to
have' promised «he banks that it
watt concentrate its future busi-
ness thrust on its restaurant
operations. The ax months’
grace period is needed . for
divestments, amtong - other
things. Since Ja&m-Reasen and
Wiwa as the main non-
restauraot activities have
already -been sold, tins presum-
ably means a tfamnangout in
the hotel sector. At present,
the group operates 31 “ Wiener-
wald” hotels, 12 “ Tourotets ”
and two holiday hotels in
Majorca, as well as being

franchisee of a Travetodge near
San Francisco airport owned by
Trustoouse Forte. ,

An international -firm . of
auditors has been appointed to
- inspect the financial situation,
and Wienerwald has said it w*H
soon present its first consoli-
dated balance sheet.

It remains to be seem to what
extent the new trading approach
wall affect the position of Mr
Jahn as proprietor of a con-
cern he has hitherto run very
much on his own. The . board
of (he Swiss holding company
is to remain unchanged — (hough
the former parliamentarian. Dr
Alfred Weber, has recently
resigned and the three remain-
ing directors now have to sign
In pairs instead of singly. '

Proprietors power
likely to change

It seems unlikely (hat Mr
Jahn and his son-in-law mid co-
director, H«t Gu enter Stein-
berg, w^l have quite the same
power in running the business
as in the past. It is also not yet
known (o what extent, if at all,
Herr Jahn has added to the
banks’ liquidity support With
personal funds.

Group profits are said to be
up to previous years’ levels
despite (he current recession,
the U.S. operations are to be
streamlined by the merger of
the International House of Pan-
cakes and Lums and funds will
accrue From the disposal of
franchises. By (he end of 1982,
two-thirds of aH restaurants will
have been passed over to
franchisees.

Ait all events, Wienerwald has
had to re-thank what appears to
have been a policy of untram-
melled growth. Herr Jahn may
still warn convincing. “Never
again sbaM I make myself
dependent on a bank," he -had
said bitterly at a recent Press
conference.

Further lasses for Elkem

BY KAY GJESTER IN OSLO

ELKEM; THE Norwegian
mini ng, metals anj manufactur-
ing group, reports a loss of
NKr 56m ($9.2 5m) an opera-
tions in the first four months of
this year, against a profit of
NKr 3m in the same period last
year, despite a rise in turnover
to NKr l.S3bn from NKr I.23hn.

The higher sales reflect the
acquisition in mid-1981 of five
ferro-alloy plants, three in the
U.S. and two in Norway, from
“Union Carbide of the U.S. In
1981 as a whole, Elkem made a
loss of NKr 152.5m.

The group blames the poor

results on the international
recession, combined with high
interest rates and cost develop-
ments in Norwi&y.

A deficit is also likely for the
current four months bat the
board expects an improvement
in results towards the end of the
year. .

It points out that even a slight
increase in the price of ferro-
alloys or . aluminitjm . . .would
considerably.
earnings. The sales value of
these two products in 1982 is
now estimated at NKr 3.31m.

PLM four-month advance

BY. WILLIAM OULLFORCE IN STOCKHOLM

PLM, the Swedish metal can,
packaging and waste recovery
group, increased earnings from
SKr 0.9m to SKr 7.4sn- (31.27m),
in the first four months. Mr Ulf
Lausin, managing, director, said
‘that profits are how definitely
on the iqiward path.

Sales ' climbed by 11 per cent
to SKr 844m and all divisions -
except for paper turned in
better results. The operating
jjBCPflt-TOSfi. from SKr 21.5m. to
int.-bot a- -SR r^Snr in-
crease in " net interest costs
limited the improvement.

The operating profit of PLM

PAC, the Swedish consumer
packaging unit, rose by nearly
SKr 3m to SKr 12.8m. The new
aluminium, can plant, which has
absorbed heaw investments,
.has a full order book
The Swedish Riksdag (Parlia-
ment) has just approved a plan
for the establishment of a
special company, owned jointly
by PLM and a number of
breweries and food retailers, to
operate a recycling system for
the new alumimum cans. A
minimum recycling rate of 75
per cent is to be reached by
1985.

All these Debenture have been sold. This announcement appears as a matter of record only.

CIBC Mortgage Corporation

(A loan company subject to the Loan Companies Act of Canada)

Can.$50,000,000

16V2°/o Guaranteed Debentures due June 1, 1987
Unconditionally guaranteed by

Canadian Imperial Bank of Commerce

. (A Canadian chartered bank)

Issue Price 100 percent.
Interest payable annually on 1st June

Hambros Bank Limited

Algemene Bank Nederland N.V.

CIBC Linked
Bank Brnssel Lambert N.Y.

Commerzbank

AktiengeseQschaft

Continental Illinois Limited Credit Commercial de France Dominion Securities Ames

limi ted

Dresdner Bank Goldman Sadis International Carp. The Hongkong Bank Group

AktiengeseUschaTt

Kredietbank International Group Merrill Lynch International & Co. Nomura International Limited

Salomon Brothers International Soti&£ Generate deBanque S .A. Swiss Bank Corporation International

Limited

Union Bank of Switzerland (Securities) S. G. Warburg & Co. Ltd. Wood Gundy Limited

Amro International

I Anfawl

BadieHalsey Stuart Shields

jBOQtpQdlal

Bancaciel Gottardo

Bank of America Intentatioml

1 im ked

Bank Canfrat fe Swit zerland (CL)

BankGutzwiUer, Kraz, Bnngener

(Ovcxaeas) Ltd.

Bank Mees& Hope NV
Barapx? Internationale a Ltmanboarg SLA.

Banqne Gfinfcraledu Luxembourg S. A.

Basque Nfethmale de Paris

Bayerischc Landesbank

Bay disc be Verrinsbank .
Ajqlen gadhdafl

Bums Fry

Cazenove&Co.

Bank Leu International Ltd.

Banqne de lThdocbine et de Suez

Banqne de Paris etdesPays-Bas (Suisse) SLA. Banqne Warms Baring Brothers & Co~,

■ Berliner Handed imd Frankfurter Bade

Chemical Bank International Group Credftmstalt-Bankverem Cridit Lyonnais Credit duNord

GeSaalntem a tidiBri I

McLeod Yoong Weir lotemarioml

IfH T Pf n

MiisubisM Bank (Europe) S.A. Samuel Montagu

Limited

Nippon Emopcan Bank JLA. SaLOppenbennjr.&CSe.

Peterbroeck.van CampenbouC &Ge S-CS.

Dahra Europe

Limtof

DGBank

DcacdteGenauenscfe

European B ankin g Company

Ham broPa cific

Istituto Bancario San Paolo di Torino
Merck, Fmck & Co.

Morgan Guaranty Ltd
OsterreidiBtiicLSndabaiik

Kbanwort, Benson
Limited

Manufacturers Hanover

IJmilwl

Midland Doherty

Linuiol

Morgan GrenfcHA Co.

Nesbitt Thomson

1 alittil

Orion Royal Bank
limted

Pierson. Hddring&PiersoHN.Y.

Pitfield Madta yRoss

Rabobank Nederland

Richardson Securities of Canada (U.K.)

Limited

S ^ yrlwiriVwnag'Pbinlr

Vgems-BndWetfhank

Wes tdentsche Landesbank
Cir o zcntral o

June, 1982

Montedison

suffers

record

deficit

By James Buxton in Rome

MONTEDISON SPA. the
holding company for the
giant Italian chemical con-
cern, more than doubled Its
losses, to L598hn last year —
the largest in its history- The
loss ef the entire group was
L619bn ($472£m)-

Tbe holding company loss,
which is blamed on bad
trading' conditions, especially
tn the . petro-cheraical - and
plastics field, and on very
high financial charges com-
pares with one of 1230^bn
in *1980. The largest previous
loss in the company’s history
was one of L509hn in 1977.

Consolidated turnover for
the group was L8.927hn, up
14.7 per cent on 1980. Of
this some 22 per cent was
exported.

Bad figures had been
expected for Montedison,
which lost L29fibn in the first
half of 1981. Yesterday the
directors proposed that the
loss be covered fay existing
reserves.

That would . take net
financial assets down to
L756bn as of the end of last
year. But with the aid of the
recent ' capital increase 'of
L640bn. the company’s net
assets have since risen to
L1.396bn. The^ : capital in-
crease will substantially
reduce the burden of debt
charges for the current
financial year.

To raise new funds
Montedison is to issue
through the merchant hank
Mediobanca, a convertible
bond issue for L2M(bn. The
bonds will be convertible
into shares of the profitable
Montedison subsidiary, Seim,
which runs 22 power stations.

Last year the Montedison
group invested L429hn and
set aside L500hn for deprecia-
tion. It spent U99bn on
research.

Montedison which in the
late 1960s and early 1970s was
regarded as one of the most
powerful groups in Italy, has
not paid a dividend since
1974 For the past few years,
it- has been in an almost
permanent period of restruc-
turing, involving sales of
assets and increasingly
drastic attempts to raise pro-
ductivity.

Last year, the Government
decided that the two state
holding companies, IRI and
ENI,' should sell their 17 per
cent stake which had given'
them a majority in the con-'
trolling shareholders syndi-
cate to the private sector. It
was bought by a consortium
of Fiat, Pirelli and the
Bononi and Orlando Group.

Yesterday, the company
said that thanks to the
measures it had taken last
year, productive efficiency
had improved allowing
operating margins for 1981 to
be about the same as in 1980
when market conditions were
less severe.

m

BY KEVIN DONE IN FRANKFURT

A CONSORTIUM of West
German energy companies led
by Ruhrgas, toe dominant gas
importing and distribution com-
pany In the Federal Republic,
is to lake over Salzgitter Fern-
gas, one of ^the smaller West
German gas transm j ssion com-
panies in a deal understood to
be worth between DM 300m
and DM 350m (3148m).

Salzgitter Femgas Is &
wholly-owned subsidiary, of
Deutsche Schachtoan- und Tief-
bohrgeseUschaft, ' toe oil and
gas producing subsidiary of
Salzgitter, toe state-owned steei
and mechanical engineering
group. The deal has Still to be
approved by the -West German.

cartel authorities.

For Salzgitter toe sale of its
gar tKstxtoution' subsidi ary w iM
provide a welcome injection of
new funds at a time when heavy
losses axe being; incurred m
sts^ ipriiductiOTL.' ' ' ■ '

An outright takeover by
Ruhrgas would almost certainly:
have foundered <m the opposi-
tion, of toe Federal Cartel Office.
The West - German gas group
has toere&me put together - a
consortium of other energy
companies' and taken a signifi-
cant minority hokhngifcsetf .

Under-, the planned deal,
Ruhrgas vnH faofld directiy 24
per cent of the voting rights
and 39 per. cent of the equity

- In . addition, it wflT bake a
stake in <t. ftcdclflig cdjnp any
together 1 watK : TSitoSi^fv- Gas ■
and .- Gas- United: 7, TVstoWtet,

. which wifi l*>td a.: further 24
'per cent ‘

-. and 25 per cerif off - toe : equity.- -
- Other compaaries jnv oived in
tod tafeeower a

SheH/Esso; joint widto

wifi hold 13, per cent, amd USTG
Munster, a gas , transapss&Mi
company , m . Weatpbafia, -' Vritfi
13. per cent'- Hi ..adrittibtf :
rramtoer j bf . . local - atithttrity
energy transmtisston- compabiBs
in northern Germany are- taloDg
- 10 - per cent .of 715ie- capital- ot
Salz^tJter Terngas'. ^id 75®7per,
cent of thfi'vbttng^iighfcj. . _

Profits up despite tolrane dijp

BY OUR FRANKFURT STAFF

RUHRGAS, the leading West
German natural gas importing
and distribution 1 company,
boosted it turnover by 39.7 per
cent last year to DM 12.7bn as
a result of sharply rising gas
prices. •" \

Group after-tax profits also
rose by 16.9 per cent to
DM 259.9m, despite a drop in
volume sales.

Overall energy consumption
in West Germany fell by around
4 per cent last year with,
demand for natural gas drop-
ping by 6.8 per cent to 59.3m
tonnes of coal equivalent (tee).

Ruhrgas’ own volume sales
dropped by 6.5 per cent or
27.8bn kWh (kilowatt hours) to
396.8bn kWh, chiefly because of

the growing' substitution: of\
natural gasi-fay'-coal in power
generation, and because of fall-
ing • deliveries to large indus-
trial users.. ..

Ruhrgas' ..return ' on sates
dropped -last year, to 2.03 per. '
cent from 2.35 per cent in 1980 ,
contanuing the dowsnvard trend
of recent yeorsi - Dr Klatis
laesen, ‘Ruhrgas . chief execu- .
rive. ..said the company was
concerned about the danger of ;
jnnetabffity failing to keep in
-step with sharply rising, sales,
and the mcneaamg rides of the '
interaational gas industry. : •

“ We only sedl one product,”
Dr Liesen. said, “and. have, no
possfbOhy of cangjeosating for
the risks of thjs sector thrinigh

taking ad vantage ' ; .of..chaa<Jea
offered - 7 in. etoer industrial
activities.-" . . .. : -

Ruhrgas, which ‘fe owned
chdefiy by a.rgmvi-‘o(: ttght
ezMsgy and intojetrad xnaceetm .

-SheH/Esso:- joint;- venture,
29.49 per7 cent, ' Bimah Pd:- .
roleuan, 25.5 per. 'cent,: Ruhr-'
kohle, T7;99 ,per «atdSVMjp®es- .
maim. 8.16 per cent,
per cent, Estel Hoesch, j>er
cent and -Texaco 349 '*pet! cent . -
— kt rocrea sing ' his 'ntHnoaal-
equity ' by " DM' ' l50in. "• to' Mt r
765m. ■“•. : c>-v ..

The captod increase is bemg
achieved by transfoaaning part;
of its reserves into equity: The - -
new sbares wiEl pay a r dividend '
from toe begkming of l98L

Air Liquide increases
net earnings by 14.5%

BY DAVID WHITE IN PARIS

THE RELENTLESS rise in pro-
fits at Air Liquide, the French
industrial gases group, con-
tinued last year, bu{ at a slower
rate than in 1980, according to
the first consolidated figures
released yesterday.

Group net, e arning s increased
by 14,5 per cent to FFr 640m
(3105m) after climbing by al-
most a third in 1980 to FFr
566m.

This reflected a slower rise
in consolidated turnover, which
reached FFr 12.4bn compared
with just over FFr llbn In 1980
and FFr 8.7bn in 1979. .

Earnings per share, excluding

extraordinary gains, rose to
FFr 37.88 from FFr. 33.07, the
company said, in an announce-
ment made ahead of today's,
annual shareholders’ meeting.

Since 1977, ■ Air Laqinde's pro-
fits have virtually doubled on
sales increased by -80 per cent.

About three quarters of the
group’s business is izi industrial
and rare gates and related
applications such as welding.

It also has interests in
engineering and . chemical
products, including fertilisers;
but is more specialised than its
main. U-S. and .European
competitors.

sees
recovery •

By pur Fraam&T Stiff ^.y-

Solvay, the Belgian chenacai ■
group, - experts to return to* .
profitability in toe fictf hatf of
ttnis -year!, from losses of BFr -
752m ($16.85m)4n 1981. .. ..

Mr Jacques Soivay, cfaadMun; '/
toad the annual ' meeting -'tbM
the first '--four ^ months of ^1982 -
have yielded a “oomforMiIe
consoikisted -profit" arid' that .
toe group result In toe first' rix -
months would definitely be-oot
of tbe- red.

Vallourec plans FFr 102m rights

BY OUR FINANCIAL STAFF

VALLOUREC, THE steel pipe
group, plans to raise FFr- 102m
($16.5m) tfnough a one-for-four
rights issue at FFr 100 (pax)
a share. The company’s shares
were changing hands on the
bourse yesterday at FFr 134.

Haring run up losses of
FFr 63m in •1980," toe group is
expected to move out of toe
red for 1981. Its parent com-
pany resdhs were back in profit,
arri group sales for 1981 were
18 per cent ahead.

EHERGYRESOURCES&

SERVICES MGORPOBATEB

Net Asset Value- • -

«. ' • 3ist May t«2 -

• $7.41

per share (unaudited)..''. - ; '

ST0CKH0L0ERS FAR EAST
IHVESTMERTS IRC. ;

Net Asset Value
31st "May 1982

$1.80

per share (unaudited). .

Financial Highlights 1981

1980

-in bflEouFr—

1981

Out activities include

■ short and medium term

■ euro-cuxrency loans

■ forfeiting and guarantees

securities

acting as trustee
accepting of deposits
portfolio manageme nt;

6SLO

Bidanceaheattotal

323

28A

Vofanw of owfits

dWO

31.7

• Doe freon banks

4tf

2 A

Secunties

W

693

Deposits

BBA

2S

Capital funds

;ao

— “ ■

Dividend

6«

* The complete balance sheet as well os da profit and

NOSEttLB

N niddfaHsrihc

laodcsbank

29, AveaneAIaatexqy
B.P.riol2L

l u xe mb o m g

7dq&ane - *i vw

472391-1 GcnealSesice 2866 NGSD/LB Genad

CgkPlyfc

470801-07 AdOxage 2Z63 NORD/LB DeaHne

^41-44 SeanJtJes 2889 MOREXLB

472391257 TdeG&piec ’ Cpa mn e g ^ ^ p j i nr r
KaEe6000 InklOAs .

NORDLB

i *• \A

f \ : ■:

■ t

U.S. $15,000,000

The Industrial Bank of Japan, limited
London

Floating Rate London-Oollar Negotiable
Certiticatesof Oepositdue7th December.1 983

In accordance with the proviaoos of toe Certificates, notice
is hereby given that far the six month Interest Period front
7th JFune, 1982 to 7to December, 1982, toe Certificates
will carry an Interast Rate of 15J% per amm The
xrievantlnterest Payment DatevriHbe7topecemba^ 1982.

fyrftf fi ma e First Hmifaw Tlmarf

■'Agent Bank

GENOSSENSCHAFTLICHEZENTRALBANK

AKnENGESELLSCHAFT

Vienna.

U.S $50X100.000 Floating Rale
Subordinated Notes Due1992

8th June. 1^2to8tt,SeptemfaBc

14H per cent per annum.

00 relevant ffifierestpaymentdafe C.

8ft September, 1 982 ^anst Couptm No. 4 vvaboli£L^^aS 7 .r'

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S7.41

' Financial Times' Tuesday June 8 1982

■STfSLflNTL. COMPANIES & FINANCE

. BY’MiaiAH.THOMPSONJ^OEL

-I£2 . AUffPR Al.TA , . .in which “• abnor mally
ICI of ube UK has a cont rolling from depres
<stake^ 1 k^ reported a lack-lustre swaaies,*’ inc

• performance for the six months the -U.S.

. 4d March 31, 1982, with profits It said pn
after -tax .hot be tore extraordi- trig, measncei
nary items, 10,5 per cent lower by the gover
at A$17nx - (U.S. 517.85m) on dibot areas,

• external - Sales of A$637ra con- marie et pres

pared wah-A5612m. In the i

■' EaMiangs per share fell /from ■ September !
>105 cents; to 05 cents in. the net profit bi
period apd ifhe interim cKvidencL items fell bj
'Is held at B cents per share. A$6L8m to J

The company particularly A$L27bc agf
"Warned -' ■lower.' earnings from tags per &h
petrochemicals and pieties for. cents to 29 .
its disappointing interim" per- ,,dend total .w
faranance, saying ihe Australian In the J
industry had suffered from period, ; oo

“ abnormally low priced, imporis
from depressed overseas eco-
nomies, M ittrl mHwgr ' fTnnadn and
theU-S. ' ..v'\

It said provisional anti-dump-
ing measures had been imposed
by the government In some pip?
duct areas,' but that intense
market pressures oontfawed. .

In the fall year fr last,
September 30, ICI Australia's
net profit before- extraordinary
items fell by 24 per cent, -from
A$61.8m to A$4€-Sm, on sales of
A$ 1.27 bn against. A$L2hn. Earn-
ings per chare fell from 34.4
cents to 29 cents and the divi-
dend total was held at 15 cents.

In the latest six months
period, ; consolidated profit

.before incomes of AS175m
compared with A$20.7m,
mijorky interests of A$2.6m
(same), and extraordinary pro-
fits of A$4.46m (nil), was
A$S7Jjn against A$42L3m- •

. The company said there hod
been growth in sales of indus-
trial explosives, heavy chemicals
&Qd pharmaceuticals, but ferti-
Ikff sales, bad been reduced by
drought. Synthetic fibre sates
.were lower,' end demand for
textiles and dtothdng bad been
subdued.

Sales and profits at the 75 per
. cehf owned ICI New Zealand
were ahead,, but the 70 per cent
owed Dulux Australia earned
toWer profits.

Arab banks
surged to seek
new business

By Peter Montagoon,

: Euromarkets Correspondent

ARAB BANKS, should diversify
-out. of syndicated lending into
fee-generating investment bank-
ing activities, according to Mr
Abdullah Saudi,, president 1 of
the Bahrain-based Arab Banking
Corporation. -
"Euroloans are only one
activity. Let us not concentrate
just on Euroloans,” he told a
conference in London on Arab
Banking, and' Finance organised
by the Arab - Bankers*: Associa-
tion. '. ' •

Arab Banking Corporation
would almost certainly do less
syndicated' tending this year
than, it did last,- Mr Saudi .said
later. In its first 22 months "of
operation toDecember last year,
it played a lead management
role in loans totalling- $20.7bn.

The decision to cut back -.on
this business was only, partly
due to a need to avoid having
"all one’s eggs in the same'
basket;" Mr Saudi said. Such
factors .as- risk and profitability
also had to- be taken into
account. \

\ Arab^banks generally should
step tip their efforts in the field
of Investment h anking and cor-
porate -finance, be told the con-
ference. In the cbmihg decade
this, offered.- the' Arab world a
chance mf more stable foreign
exchange income than reliance
on oil :ew>Mts alone,

: But he; also warned that Arab
banks' should pay close atten- :
tion to insuiing- that they had
an adequate capital base. '■

Israel Discount Bank to
make $16m rights issue

BY L. DAKUB. IN TB..AY1V.

ISRAEL DISCOUNT BANK,- the
country's third largest cammed
rial bank is seeking to 'xaise'
Sh. 362m ($16m) through a
-rights Issue. Holders of' A and.
B shares, of Series 1 options,
and' of Series B 2 per cent, de-
ferred. capital nates ..wfl 1 be
eligible. , ’

The shares will be offered in
the proportion of one new share
for 18 held at a price of
Sh. 18L5 pea: ordinary A share,-'
which was. traded at the begin-
ning of June at. 2651 cents.

Ah increase in the registered
capital of the Israel Discount
Bank and of Israel Discount

Bank Holdings (the parent com-
pany which holds S3 per cent
of the shares of the bank) is to
be considered by extraordinary
general meetings on July 13.

Bank Leumi, the country's
largest hanking - concern has ,
, announced, meanwhile that it
-too has increased its capital by |
: completing the sale of a tranche i
of S60m of capital notes issued i
by its Antilles based affiliate :
Leumi International Invest-
ments. The notes are redeem-
able in 1989/92. This brings to
5395m the total raised by Bank
Leumi on the Eurodollar mar-
ket since 1976 of which $30m
has already been redeemed.

United Engineers payout
cut after S$19m loss

BY GEORG IE LEE IN SINGAPORE

UNITED - ENGINEERS has
announced -a pre-tax loss of
S$193m <UBS95m) for .1981
compared .with a ---profit of
S$3.31m on turnover . down by
9 per cent to S$169m.

The operating, loss was
S$lSL5in against a profit of
S$3.7m and the after tax loss
was S$21.8m compared with a
profit of S?104,000. ■

. The company mainly blames
the downturn on finance charges
which soared from S$3.6m na
1980 - to S$10.7m. Foroign ex-
change losses amounted to
S6744.000, and an, extraordinary

loss. of S$337m makes a total
net loss of S$25.13m.

It has been decided to main-
tain a gross dividend of 7.5 per
cent on the cumulative
preference shares but the com-
pany is cutting down sharply
the gross dividend on its
ordinary shares from 7.5 cents
to 1 cent per share.

' The only cheerful news far
shareholders, is the announce-
ment of a revaluation of
properties owned by the group
aiu3 an associate company. The !
surplus of S$75Bm has been
transferred to reserves.

Tiger and
Premier in
battle for

MandF

By Chris WHson in Johannesburg

SOUTH AFRICA’S two
largest food groups. Tiger
Oats and Premier Group, are
fighting for' control of Monis.
and Fattis fltt and F), a flour
milling and pasta manufac-
turing -company which is of
considerable strategic impor-
tance to both tides.

After attempting to .block
an earlier K23m ($2 1.2m)
bid for 51 -per cent of M and
F by Premier, Tiger -count-
ered last week with a R31m
offer for the same percentage
of the equity. Tiger aggress-
ively sought and- gained
acceptance of its offer at the
weekend, but a court action
brought by -Premier' on
Sunday right ■' blocked the
transfer of M and F”s shares
.to Tiger.

Acceptance of Tiger’s offer
came from the ■ -majority
shareholders -'-of ; Monis
Brothers, the unlisted, family-
owned company which holds
81 per cent of M and F*s
equity. Tiger is confident that
its higher -"offer • should
guarantee - an ^eventual- vic-
tory, hut the legal -dispute
centres oh -the question of
. whether the shareholders of
Monis Brothers are legally
bound by an earlier agree-
ment with Premier.- '

Premier is adamant that it
already has control of M and
F in terms of an agreement
concluded- with Monis Broth-
er’s chairman, Mr John Moni.
He can call on the support
of holders of 75 per cent of
the equity in Holds Brothers
and Premier claims he has
already - signed -documents
which* are -binding' on. the
shareholders 1 of the , family-
owned company *

The Moni family .was, how-
ever, divided on which offer
to aeeept. Premier’s chair-
man, . Mr Tony Bloom, has
described Tiger’s offer as “an
emotional bid ” and indicated
that Premier is not prepared
to raise its price.

Tiger believes that Mr John
Mom's acceptance of the
Premier offer Is not binding
pn- either, the. minority or
majority shareholders of
Monis Brothers. Tiger is -
backed by a dissident family
member, Mr Benito Moni,
who owns 25 per cent of the
equity In Monis Brothers. It
has -beeit argued by - Tiger
that Hr Benjlto Mom granted
Tiger a first option on his
Monis Brothers shares sev-
eral months ago. '

TKb aunouDoamentuppoam m a mribr of record oulp.

NSW ISSUE

April 1982

CAISSE NATIONALE DE L’ENERGIE

PARIS

■ m ,

• • ' . % *

Swiss Francs 100000000

7% Swiss Ftanc Bonds of1982 due 1992

French State

SODITICSjL CREDIT LYONNA^ FfffAN^AG ZORICH KREDlEIBAMC(StlBSE)SA. IMRDFMAKZHANKZORICH

BankHeooser&CiaAG ChasallanhattanBank^aisse) Credit Commerelal de France <Sutess)SA.

HratChkagoSA. ^ Hie Royal Bank of Canada (Suisse) Soi^ G6n*BteAtaactennedeBanque-GroupeSod6te(Mii6raJe-

BaricSchoopRefff&Co-AG iinv*, Bm*

BmqueScandinanen Suisse ' licyneBamciniBniaHonalUfl.

Cflfcoip lat e ma ttonai Finance SJL .-
Hotteiger AXte ' :

Arab Sank (Oveiseas) LldL ’ ' AimandvonEmst&CieA©

' Banco diRoma per teSvIzzera

/ ' - * : Bai*!iiid Finara4nsffiidAfi

SJL . _ ’ [BanqimdahndbclilmietiteSnoaiSii^^

Aramnd von Ernst & Cfa AO
Banco di Roma per la Svibsseea
. . ; - _ Baric undFinanz-insffiid AG

Banqiw^nnidbcfiliiaetcfBSoa^SiicciirsalescteSidsse

Banque

l^nils-DreyfiisenSinsseSA.

Nafionate do Paris (Suteae) SJL . '

Banque Moigan GrenfeU an SnisseSLA.

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Oonvsagnie de Banque et dTnvBsfissenienls, CBI

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B^l Bank (SchweaO'AG

DaKcM Kangyo Bank (SBhwei^ AS: .

Grfedtays Bank SJL - • : . ' .

•• .*■

Gewerbebank Baden

KWnwort, Benson (fieoawaJ&A..
HedeitaMtectolfid(tenst«idti)Hdt.(SBnfe)SA». ,.

Hyptdheknf^iuidHandQltiiankWtntwttTOr

Itew JapaaSecnrffioe^ciafBfeJAS - ' ;

Overland Trust Baric

Userid, Bmknam & Ca AG

PWbrohankAG

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ISiTTUTO CENTRALE PERIL CREDITO A MEDIO TERMINE

US .$ 76 f ) 00 P 00

Medium-Urm Eurodollar Loan

• • Pnrsnapt to Italian Law No. 227
as amended and supplemented by Law No. 394

Guaranteed by

The RepubEc of Italy

PROVIDED BY:

Banca Commercials Itahana Overseas Limited
The Bank of Tokyo, Ltd. .

Credit Commercial de France

SOCIETE FmANCIERE EuROPEENNE FINANCE COMPANY N-V.

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Algemene Bank Nederland N.V.

Banque Bruxelles Lambert S A.

Morgan Guaranty Finance Limited
Wells Fargo Bank,N A.

AGENT:

Morgan Guaranty Trust Company ofNew York

This advertisement appears as a matter of record on$r.

Februaryl982

This cmncm»ccmttdapptxcrs as amatier of record oviy.

NEW ISSUE

April, 1982

U.S. $60,000,000

South Carolina Electric & Gas Finance N.Y.

15%% Guaranteed Notes Due 1989

Unconditionally Guaranteed as to Payment of Principal,

Premium, if any, and Interest by

South Carolina Electric & Gas Company

WfrtoTl wfll jpuflip lft» Hyryt and Hefandmg.'M'nr fgagB Ttnnflii ffw grimy*

- Kidder, Peahody International

- Xtatftad

BankBrnssel Lambert N.Y. County Bank Credit Lyonnais Deutsche Bank

1UM JUtdmw^lnaaJt

Nomura International OnouRoyalBank J.Henry Schroder Wa gg & Ca

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Socifite Gfinferale deBanqne SA. Union Bank of Switzerland (Securities)

Algemene Bank Nederiaod N.Y.

Rani*«n mmnfirritaIftTfa K gnfl _

AmTO lnteTiational

Umltal

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AinhoM and S. Keichroecfer, Inc. IrinsBaerlnteniatianri

Banco diRoma Bank of America International

Banque Pariente

B^rfcGnizwilter, Kurz, B mi g eae r (Ovarseas) Bank Leu Internafioiial lid. Bank Lemm le-Israel Group Bank Mees & Eope NY
Rgnrrnft Antliift rf. to teraationafe dTtnw rfwiA iiwi rf BaibrueG^a^fafe da Luxembourg SA. Banque bdosnez

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MemU TamA tofimMfwniJ frito. SamsdHoafrgn&Gow MogaiiGrenCeO&GD. ' Morgan Guaranty Ltd

ti^u , ' 3UofUt

Mmgm^nde^InlQiiationri )^posfhe£tIntemti«iial (HKJIid. Nardd^sdielaa^sh^GroiHrh^e Nordic Bank HjG

^Qjgienheanijt&Cfe. Tjtoferfu p& Ptotef BdEnn&ntilti. Heram, Heldring &. Kerson N.Y.

Salwnon BroflmBitesmfeMl SsnwnBsdc (Underwrites) &ttaan Interafional Secnrities ltd

gnwft Bffipe y, Bm B & Co. _ SoriftfiBaneareBatdags (Saisse) SA.Gen&ye

Sod^G&ficds " ' g venska fenddtirotoa Swiss Bank Coi p^atio n International

Verfauwf Sdnp egtff^rfi^- FanfimalKMikwi Ve^^ VrfWeS&k&tk LYontri}d&Go.

M.M & Co. KaWaiiniz&Goulid. Wetifedstfelaudesfe* WBam&W&tedt

; -Gmaentrate- - - •

Coapanies and Markets

WORLD STO CK MARKETS

financial Times . Joob~^3^SZ: .

ACP Industries...;

AMF • !

AM I Itn '

ARA ..

ASA |

Avx corp. ;

Afabot Ub9

Aemo Cieve ;

Adobe Oil A Gas 1
Advanced Micro..

Aetna Uf» & Gas

Ah man son 1H.F.1.
A)r Prod A Cliem

Akzons. |

Albany Int

Ajberto-Culv

Albertson's •

AicanAlumlniuml
A[ C q standard.....
Alexander ft Al.„.

Ajegheny Int. I :

Allied Corp •

Ained Store*. — I :
Allis-ChaJmers,..., 1
Alpha Portd. — i

Alcoa. ...» - —

Atnal. Sugar 1

A>r>ax

Amdahl Corp

Amerada Hess

Ain. Airlines

Am. Brands

Am. Broadcast'^'

Am. Can :

Am. Cyanamld....;
Am. Elect. Powr..*
Am. Express . ... <
Am. Gen. Insnce.: ■
Am. Holst ft dr .
Am. Home Prod.. ‘
Am. Hosp. Suppy- 1
Am. Medical Inti. :

Am. Motors

Am. Nat. Reaces. ■

Am. Petflna I

Am. Quasar Pat.;

Am. Standard j S

Am. Stores 1

Am.Tel.4Tel

Ameteklnc

Amine I

AMP I

Am star i

Am at end lnds.....i
Anchor Hockg..... 1

Anheuser-Bh. ■

Arch or Daniels ..
Armco -

Columbia Gee .... Si's i **
Columbia Piet.... 70Tb ! Tl
Combined inf... rose | 807*
Combustn. Eng.. 8Gi« • 27
Cm with. Edison. 88 ; 88

Comm. Satolite^J 84 j 68

Comp. Science... i 12

Cone Mills. —| Wa

Conrae. 83*4

Cons Edison \ 304

Con*. Foods. 324
Cons Freight-.... 34 s *

Con. Nat. Gas 439a

Conmuer Power] 174
Cent. Air Lines... 44

Conti. Corp- 844

Conti. Group 874

Conti liionis....~. 304
Conti. Telep — 18**
Control Data— 84

Armstrong CK....

AsameraOfl

Asaroo

Ashland Oil

Asad. D. Goods...

Atlantic Rich

Auto- Data Prg...

Avco

Avery Inti

10*i 154

74 1 7S»
194 , 804
.- 23*i ! 234
.. 32 4 » 82 U
.. 40 U ' 414
244 ' 85
15 4 I X64
.! 844 i 244

Avnet

Avan Prod i

Baker Inti :

Bait Gaa & El — t

Fan Cal

Bangor Punta ...
Bonk America ...

Bank of N.Y |

Bankers Trt N.Y.;

Barry Wright

Rausch & Lomb^
B.ixt Trav Lab. ,.i
Beatrice Foods...!

Baker Inds I

Bell & Howell ...
Bell Industries ...;

Bendfx -

Beneficial - 1

Beth steel

Big Thee Inds.....;
Block & Decker..

< Block HR

B ue Ball •

Boeing \

Boise Cascade....;

Borden ;

Borg Warner

Branlff inti :

Briggs Strain

Bristol-Myers '

BP I

Brockway Gl«t*.j
Brown Forman Bi

ErownQrp :

Brown & Sharp...
Browng Ferris....!
Brunswick

Bucyrus-Erie

Burlington Ind ...
Burlington Nrthn

Burndy

Burroughs. •

CBl Inds 1

CBS •

CPC Inti

CSX . i

Campbell Red L
Campbell Soup~.>
Campbell Tagg ..
Canal Randolph.'
Can. Pacific

Carlisle Corp I

Carnation. j

Carp Tech _.|

Carter Hawley

Caterpillar ■

Cc I an a so Corp...i 1

Ccntcl i :

Centex ,

Central ft Sw

Central Soya i

Certain-teed

Cessna Aircraft..
Champ Home Bid

Champ Int

Champ Sp Plug-

Charter Co

Chase Man halt' n <

Chemical NY

Chesels Pond ■

Chicago Pneum..!

Chrysler.

Chubb i ■

Cigna ' ;

Cincinnati Mil.. ..j !

Cities Service I j

City Invest. I !

Clark Equipment] 1
Clave Cliffs Iron. :

ctorox :

CTueltt Peaby !

Coca Colo- — 1 i

Colgate Palm ! 1

Collins Aikman.... i
Colt Inds i 1

134 • 134
214 214

444 464
lSU 184
334 i 344
334 [ 33*«
364 ! 374
34i| | 35
40*. | 407®

184 12**

37 38Ig
47 Tg 464
287* 89

194 20 7g

164 154

IUb 11 >s
114 117*

154 I 15**
2** I 23*
13 ] 134

7** ! 77a
9 ■ 04

40 i s I 424
SO** I 314
35 334

14** 144

54 6

404 41

36*i ; 384
304 814

86 85*.

384 I 364
284 ! 83 4
19 ] 194

164 1 194
134 I 14
174 I 174
334 334

167* 174

114 ! 184
284 i 84

Cooper Inds ■

Goars Adolph.....)

Copperweld <

Corning Glass....;
Corroon Black... j
Cox Broaneasf g(

Crane- j

Crocker Nat. :

Crown Cork

Crown Zell

Cummins Eng — !
Curtiss- Wright ...j

Damon -i

Dana - <

Dart ft Kraft |

Data Gen _...

Dayton-Hudson J

Deere 1

Delta Mr

Denny's-

DentaplylnU 234

Detroit Edison.... 184

Diamond IntL 39**

Diamond Shank-] 184

DIGiorglo 9

Digital Equip...... 714

Dillingham 10**

Dillon 284

Disney (Wart) 834

Dome Minas 84

Donnelly (RR}—.. . 404

Dover Corp 81

Dow Chemical ... 21

Dow Jones— *34

Dresser IB**

Dr. Pepper 124

Duke Power- 824

Dun ft Brad— 674

Du Pont 334

EG ft G 174

Eatao 184

Eastern Airlines. 64
Eastern Gas A F. 184
Eastman Kodak- 71

Eaton 29

Echlln Mfg - i lir B

Eckherd Jack.,... 174
Electronic DetnJ 28 >g
Elect. Memoriae. 4

El Paso 194

Emerson Elect... 434
Emery Air Fgt.... B

Emhart 34

Engelhard Co rp-| 88

Enseroh. ............ .1 194

Esmark - 464

Ethyl— I 187 B

Evans Prod —! 104

ExOallO | 824

FMO— 1 84

Faberge.- [ 154

Feddara i 34

Federal Co. ; 28*«

Federal-Mogul— 80 *b
F ed. Nat. Mort— 94
Fed. Paper Brd... 19**
Fed. Resources.. 07 B
Fed. Dap. Stores 414

Fleldaraet Ml 1 884

Firestone- I 104

1st Bank System 30
1st Charter Fin..] 10

1st Chicago..'-.:.. 154
1st City BankTaicJ *44
1st Interstate.— 884
1st Mississippi— 94
1st Nat Boston.:. 23
1st Penn. ' ' 34

Fleetwood Ent...j 144

Flexl-van 1 165®

Florida Pwr ft I— 316*

Ford Motor _.| 12

Foremost Mck.... 89 t b
F oster Wheeler-. 114
Freeport McM— 16

Fruahauf IB4

GAF Ill*

GATX— , 864

Gan net.. „.J

Geioo... ■; :.J

Gen Am Invest ...}

Gen Cinema

Gen Dynamics-...!

Gen Electric |

Gen Foods i

Gen Instruments;

Gen Mills □

Gen Motors

Gen Pub Utilities)

Gan Signal !

Gen Talep Dec...]

Gen Tire

Genesoo : j

Genuine Parts.
Georgia Pec—

Geosource.

Garbs* Prod....

Getty OH

Glddens Lewis.

Gillette

Globe! Marine..
Goodrich (BF)_
Goodyear Tire.

Gould

Grace

Grainger (W.W)

Kanab Services..!

Kaufman Brd j

Kay Corp J

Kellogg I

Kennametal ’

Kerr-McGee- j

Kldde ;

Kimberly-Clark .]
King's Dept «...*
Knight Rdr. Nws.;

Koppers--

Kroehler.

Lanier Bus. Prpdl

Leas-Siegler

Learoway Trans j

Lenox -.]

Levi Strauss...—.
Lovitz Furntr —
Ubtoy Owens Fd.

Uly (111)-

Lincoln Nat— .

Utton Inds. :

Lockheed

Loews.

Lone Star Inds—
Longa Drug Strs.
Louisiana Land...
.Louisiana Pac*...
Lowenstefn ........

Lubrizol

Lucky Strs.

M/A Com. Inc

MCA. -j

MacMillan —

Mao- - |

MfcrsHanovar— I
Manvllle Corp.

Mapoo.

Marine Mid

Marriott

Marsh McLean. ..|
Marshall Raid....:
Martin Mtta— .
Maryland Cup —

Masoo

Massey Fergn.
Mass Mu It! .Carp.;

Mattel. j

May Dept. Strs_.|

144 I64

74 74

94 94

24 244

86 87

37 7 B .284
804 I 20**
604 60

84 84

284 884

144 144

7T B 84
304 304

114 124

164 15**

834 24

264 26**

36 I 587 h
23 83

84 844

224 224

614 684

40** 424

394 | 39*4
46 Tb 484
861$. 864
20 19T B
28 7 B 283*
864 27

154 1579.

27 T* 264
194 194

134 13

SO 204
564 684

144 144

344 35**

274 284 ’

97 fl iq .
28 ’*84

18 I84

364 37 4

334 33*«

29*4 29*«

264 274
364 364

31 ! 314

2 | 2
I84 i 184.
17- 1 174
274 > 284

Schlttz Brew—j 17

Schlumberger— ; 40i>

SCM -.^824

Scott Paper 14**

Season ,-.4 f 224

iffisi ram. - So 4

Sealed Power — 29**
Soarto (GD). 334

Sears Roebuck .18**

Security Pac. 314

Sedco; — •— ! 294

Shall Oil 374

Shell Trans 29 t b

Sherwln-Wma— . . a*7 B

Signal — ... 17

Slgnode 474

Simplicity PatL- 84

Singer...... 12

Skyline 13**

Smith Intt 274

Smith Kline Beak 65

Sanest* Inti- 10

Sony - 139*

Southeast Bankg 154
Sth; Cal. Edison . 32

Southern Co. 124

Sthn. Nat Rss.„ 26
Sthn. N. Eng.Tel. 434

Jthn. Pacific 304

Southlands J 30**

8.W. Bancshares' 234
Sparry Corp 22**

Spring Wide 27

Square D Sfisn

Squibb _.. *4*»

STD Brands Paint 247b

Std oil Cl 1 fornla.; 334
Std Oil lndlana.-i 434

Std on Ohio 364

Stanley Wks. -—I 13* B
Stadffer Chem„! 194
Sterling Drug— ' 234

Stevens W J>.). ‘ 154

Btokely Van K— 1 287*
Storage Tech—.: 21 4

Sun Co- 564

Sundit rand'.-.— I 274

Superior Oil _J 283*

Super Val Strs.-.] 16**

Syntax. -.1 334

TRW 474

Taft —J 294

Tampax——.—) 333*

29i. 1 294 I BRnrii””

??«*:!??• lS5K x .-::::“

Tesora Pet

Texaco ■

Texas Comm. "Bk
Texas Eastern —
'Texas Gas Tm ...
Texas lnstr*m'ts
Texas Oil ft Gas...
, Texas UtHlti.es -J

I Thomas Betts _

1 Tidewater

Tiger Inti J

Time Inc

Times Mirror !

Timken... 81 4

Tlppeirary- 1. 84

Tonka... 204

Total Pet I 10

Trane -j 30 4

Tran same rl □>.... 194

Tramway 204

Tram World- ) 204

Travsllers— 414

Trieentrpl — 1 74

Tri Ooiitlnental—I 17**
Triton. Energy—' 144

C rier- - 14

AL— 174

UMC Inds. 73*

Unilever N.V.— 564

Union Camp. 484

Union Carbide..- 434

STOCKS ON Wall Street were
weaker at mid-session yesterday,
although .above earlier lows,
while .trading was relatively light
as many investors moved away
from the. market amid, a back*
ground of high TJ.S. interest
rates and a- worsening economy.

The Dow Jones Industrial
Average, . which fell 1X52 bn
Friday to a 2}-month low, was
only a net 2.18 lower at. 802.80
atJX pm after touching. 800.70 at
tbe 1X00 am calculatioa. . The
NYSE All Common Index was
down .22 cents at $63^0, after
263.03, although declines still led
advances .at ' mid-session , by a
three-toroioB ratio. • Turnover
came to 304Slm shares at 1 pm.

Yesterday morning. Con-
tinental Bank of .PlrOadelphta
raised ito prime rate hack up to
16} per' cent' from- 16, leaving
ohly- two maj or banks— Citibank
and , First National Bank of
Boston— rat the lower level.

.. Also- weighing on the -market
was a report by tbe nation's pur-
chasing managers that the
economy! ' suffered a -dramatic
decline r in May and Israel's
invasion of Lebanon ., over the
weekend. _A decline in the Bond
market was also siphoning funds
away from ' stocks'. -

Oh Drilling stocks. One of the
weakest groups- in the market
Jast week, continued to decline.
Active Schlumberger .shed | to
$40g, Bakbr International i to
$2Ai and Geosonrce J to $41}.

Cities Service and Mesa
Petroleum were both active.
Mesa- started its tender offer for
15 per cent of CirLeis Service’s
stock at $45 a share and rejected.
Cities Service's offer for up - to
37m Mesa shares at $17m each.
Volume leader Mesa rose i to
$18$ and Cities Service lost 1}
to S36J..

However, several Oil. stocks
received a boost from last week's
news that the UK has raised the
price oF North Sea oiL Atlantic
Richfield rose 3U to $414, Stan-
dard Indiana SI to $44. Superior
Si to $29 i. Shell $} to $372,

- Closing prices tot North
America were not' available
•for this edition;

Union' Oil California $f to $35?
and Phillips SJ tb $31}.

THE AMERICAN SB. Market
Value Index was down L57 at
257.41 at 1pm. Volume 2.79m
shares.

Canada

A further brood decline
occurred in thin early dealings.
The Toronto - Composite Index
receded 8A to X45X5 at noon.
Oil and Gas 37.8 to 2,4S6J2, Golds
7.6 to 1,828.4 and Real. Estate
110J2 to 3.333^.

Tokyo

Most shares kwt fresh ground
in very thin trading, reflecting
investor worries, over Ihe re-
newed weakness' of the - yen
against the . UB. ' dollar. Wall
Street's fall on Friday to a 22-
month low and the conflicts: in
the Middle East and Falkland
Islands. . .

Ihe outcome of the Versailles
summit of industrialised nations,
had little bearing on trading,
dealers added, j. ^

The Nikkei-Dow Jones Aver-
age, which declined 13.Q7 : in the
Saturday half-day session, fell
46.08 yesterday to . 7^4236. The
Tokyo SE index slipped 2.67 to
542.24, wfaoTe volume on the Ffst
Market reached only 130m
shares, against last- Friday’s
190m.

Selling depressed prices in
many sectors, inoludmg Light
electricals. Motors ,and Precision
Instruments, b«t Heavy Elec-
tric Machine Makers made
gains, with Hitachi ‘firming Y7 to
Y670. r

Toyota Motor eased Y30 to
Y1.040. Nippon Electric YlR'to.
Y79C Sony Y40 to Y3.360, Canon
Y9 to Y776 and Victor Y80 to
Y24560.

Germany

A widespread retreat , took
place in quiet trading, fibe. Com-
men faa rft index •weakening 8^
•*0 692.0.-

y A report ‘last P^idacy-of lower
tn mnmig orders frobt -. abroad
hurt <export-orientated issues,
-wbBe a weak Bond nmket took
its toll oh interest rale-sensitive
shares. The Versailles soanmit
provided ho stimulus and die

. Hmftnng Stie - elections woe

'.indecisrve, dealers conxmeziteC 7 ‘

Among Engineerixig^JUnde-

• lost DM 5 to DM 272. COTBf-DM 3

• to DM 18460. and Deutsche' Pah-,
cock DM 3.50 to DM 192^0:

Faro

; French 'mid foa«gn:;:^ .

were brbadhf' iowef in: moderate
-tra ding -' ab the simritot responded
; haxiffidy " to - jbew^': . ffidneaurt :
tonston^and inctmclusire!' results
; of ftte _ seven-nation. . caaaomic.'
1 summit at .Ve*ua£Ue&: • '

In. lower • Metais, Vallourec
eased 'FFr 3J6 to FFr134 after
■ ahnoaiHdng a onesforfbar tights,
iseae at FFr. 100 per sihwe.

Hong Kong~ ;

Stock prices went Into ajfresh
slide yesterday in • further thin
■trading, with the market Index
threatening to break through a
“support level r and possibly move-
much lower.-

The Hang] r Seng Index closed
23.88 weaker at lv337.4S. Turn- !
'over- m - the ; - : four exchanges
totalled. HK|a06.44m, -.little
., changed from '; last Friday’s
HK$207.34m.' - ! = - •

Brokers said. . that Friday’s
sharp setback. op Wall Street and
a weaker' Hong Kong dollar con-
tributed to. the bearish trend.
They added '.thit the weaker
currency means tiiat the cut in
local prime rate just, a week ago
may now be in jeopardy^ or 1 at
least stalled where it is,’ •

Analysts . said that the- market
is likely to'- test the Z^30> level
for the Index, -.considered a sup- .
port level,- and if it fails to hold,
that paint, the market may be,
beaded to well below -3*300.

Among the ' leaders,'' Cheung
Kong lost 40. cents to.HK$I650,
Hutchison Whampoa. 30 cents -to -
HKS16.S0, Hongkong Land. 20
cents to HK$7.90 ' and Swire
Pacific “A” ,30 cents .to HK$IX30:-',

Singapore j i

The market accelerated : its
recent retreat 'yesterday. In .
addition to the depressing effect
of Friday's Wall Street fall and
yesterday's weakness on the..
Honk Kong stock exchanges, .
Singapore shares were weighed
down by reports thkt neighbour-'

ihg- ..Malaysia - rite otoM- trim
dcvelopm«it XRm

to 1 - 2WL ringgite - r ^tite year,
representtog a JJO to 20 pCT ceot
cut ‘ -; L -

The Singapore Strait* Trim^
Industries Iadex'- receded 14.74
to 727.8X -i’.tr ‘J -

Political and- ’ecOnomit TSBwk.
front Malaysia/ ' unef j oC.-Sto®K ; -
pore’s biggesftzadmg partatts,
weighs heavily]., on '-tbe -Isitogrfs '
stock market ^.’ where ’ j many
Malaysian companies are fis^d.

Components ^ tb&. SO-stoek
Straits T^nes Index showedsome
of . tiie sharpest; losses! / Motor
Distrilmtor^*dft.-aHd-“C*rrfagie
dipped TZQ.cent sj to S $2.7y, 'Triglft

.stahle.SSt^to ;

MUI snd Selai^n- Ptopraljes. '
two Malaysia-based - .companfca

with- f . large -■ ■•'prwettr rmterpstar

who are totb siipibct toy fteqiwnt
bouts .-of speculation, ffipped'-rlit
cents - to : S$3.38 and 21-daittf-tQ ”
S$4S4 respectively. ... ;fj. :

' .Australia'-"

Shares vigeaereBy^^de^BOTl
afresh yesterday in further
trading, .-with, the .^harec falVon:
Wall 1 - Street - otf- " Friday
bearish Tradmgia-commodilfes In
London. ,' .’.week; ' farther
dampening sentimeiX
The

index closed 53 lowest at r 402.fi, .
while the OH and Gas indey^idd ;
8.0 to 467-7/MetaIs mid SEMreix \
4.4 to 3513 and lndustriaia' ta .
6613. :■ '

However, brokers* said thaf ff
metaL prices in ;Lopdon flitted

yesterday . in - response; . to :-^he
Israeli invasion of 7 toothott -
Lebanon, - this -would ease pres-
sure on Australian Mining iwnra;

: BHP closed, at its lowest leVd
since April 21 with a
loss to ^$7^6, vrtdle ANZ Banpk,
ing dipped 7 cents to A$3v83. IC3- '.
Australia eased 4 cents t6 A$l-®l .
on ahnounong ldvtner first-half '
profits.

TheJadcsonoilfleldpaitoere
were mainly lower. - 7 r

declined 6- cents to 73 cente,
Santos 6 cents toA$5.38^Vhangas -
10 cents: to A$7.70 and CSR Y
cents to :A$2fi8. - . - - w.--

BQ.G(UM (continued).

Prios I +«
Fr*. r -

Union Oil Oal

Union Pnolflo —

Unlroyal

Unto. Brands

Unt Energy Roa.i

US Fidsllty G;

us Gymum

US Homa..._

US Inds I

US Shoe.... '

US Staei.

US Surgical^

USTobaoco.. I

US Trust. i

Uto.TeohnoIgs...)
Utd. Tolacom ms.
Upjohn j

Vartan AnMsT!3
Vcr nitron

36 364

364 36**

7s* 7 Tb
9*« B4
324 32**

3SH 404
264 .274
US* 124
9T B 9t b

31*4 33
314 a It®
214 23

43 4 434

35 36

35a* 36

189® 184

424 424

444 .446®

336®' 34
10 X04

3.60

9

334
74

a

814 I 314

504 I 304

Maytag ]

McCulloch

McDermott (JRL.

McDonalds

McDonnell Doug,'
McGrow Edison J

McGraw-Hill |

McLean Trukg ...|

Mead

Media Gen! !

Medtronic

Mellon Natl

Melville •

Mercantile Sts...'

Merck

Meredith

Merrill Lynch

167® I 37
94 I 94
80S® < 301®
674 I 679®
54** 35

26** 274

S0T B 605*1
12*a 124

164 i 17
35 . 364

434 43J*

284 295®

467 B j 479®
62 4 ! 624
7258 I 734
594 694

354 ; 36

Virginia EP !

Vulcan Matrts ....
Walker (H) Res ...1
Wal-Mart Stores.

Wamaco J-

Warner Comma..]
Wamer-Lambt ...1
Washington Post]
Waste Mangt

Weis Mkts

Wells Fargo^ I

W.PoInt Peppl,....
Western Airlines;
Westn. Nth. Am r.
Westlnghouse....'

Westvace

Weyerhaeuser....!

Wheelobratr F_.-
Wheeling Pitta ...I

Whirlpool ..._l

White Con so ltd ^
Whittaker,..., ,.{

WilUams Co.. 1

Winn-Dixie

Winnebago _.[

Wise Elec Power

Woalworth

Wrlgley.„_ „.J

Xerox I

Yellow Frt Sys ...!

Zapata „...i

Zenith Radio... J

127® 127 8

634 63**

134 139®

49 494

317® 32

464 «74

22lg 824
334 334

304 30A*

87 264

20ta 214
234 S17g
34 . 35®

10 104

34S® *47®

195* 295®

24 | 247®

294 I 294

15 ; 14

28 284

263® 26

227® 28

30 3

144 154

364 38 Bg

64 6

31 { 314

184 189®
315® | 314

87® 9

30 s® 31

10T a 1 101®

16 j les®
114 | UT®

165* |

1 17

19l« ]

195®

Indices

NEW YORK

-DOW JONES

June [ June > June 1 June 1 May
4 | 3 I 3- ! 1 I 38

^ 1 Hfflh !

'Slnoe Cmpll'f n

High Low

elnduatr'ls' 8W.88I 818.68 B1B.M >8HJ7,B18Ji4B24 JBj 882JU 7SG.47

H'meBndm. 69.02] 68. 01 Bfl.fll' 69.78O0JM MjoJ S'

I ! [ (27/67 112/27 . .

Transport J 3 17.D7. 323.07 320 JA .'319 J1 320.14 32S.B]I 388.48 374.38 j 447.38 I 7ZJ82

Utilities j 110^ 111.CS 1 HLfll il10^flil11.B8]11Ufl! T?8jM I 1MJ1 !°18 bI|2 . ^IM^

T ^ . j I | j M, ********

OQO-t 1 4,4110' 48, Ull 4S.2M .4I,BM4B > 9M , 44 I 73D — | — I — i —

1 • I- 1 1 l J . ! I !

t Day's high 818^7 lew 802.43

May 3B 1 May 31 I May 14 Year ago iApprox)

« Dlv. yield %

Ind. P/E Ratio

Long Gov. Bond yield

NY. S.E. ALL COMMON

JuneJune ] June Jum
4 3 1 2 : 1

1 muun. . 1,1 *** and F’alls

L COMMON .June 4 June 3 June 2

I 1983 —

me June' , Issue* Traded 11^320 <1,848 ;1.847

2 ! I ! High ' Low »*«■ !. 330 [ 594 ; 752

1 Falls ,...,1,096 816 ! 642

HONGKONG ! • j •

Hang Seng Ban k ffl/7/84 ;TS37,48?1M1.M;T57T.a] 1377.82. 144U2412/1) 17HJ5{B/3)

777 M (24/3)

JAPAN-. , | . |

DOW Average (18/6/49) ,7242.887380^4 738 1 J4 7344.8® 7818.BB (87,'T) | 68SB.SS (17/31
Tokyo New SE («fl/BS) , 642.24! S4W»7; M6.E4] &4S.48-: 688^8 (27/77 | 620.78 (17/S)

NORWAY . •

Oslo SE (1/1/72) j 712.18 128.74] 721.11. 120,82: 1Z8.SB <2B/1>

SINGAPORE ]

Straits Times 41366) 728.81 792^5

63.48 .64,42 64.66.64 J7i 71JM 62.62 Unchanged..... 400 * 458

1 i I I (4/1) (72/3) New Highs. 2 11

New Lows 102 i 12B

MONTREAL

i June j June . June June ;

4 3 : a i

SOUTH AFRICA
Gold rUBS)
industrial (1988)

SPAIN

Madrid SE (18/12/67)

67 +1

59 -1

92

586.* >.

fu) |

628.6 f

(U) 1

IndUBtrlals ; 233.88] 209JK' 272.22] 271.08] 332.79 (4.1) j 2B3J8 (4rt)
Combined 2S0 2H.15| 267.14- 267.53] 31828 (4.1) i 260J6 (W

TORONTO Composite! 14W.3 il484.4 I KTO.st 14SGjU( 1U8.I ,4.1) ! M60A (4«V

NEW YORK ACTIVE STOCKS

3

(o> . ; 10TJM) TB4J2 mi4| 707.46(8/2) j 88^1 (38(6)

Jacobson ft P. (1/1/6*) ] 686.8B] 6HJ4] MI.GOj BBS^Sj 868.62 (22/7) 633^2(28(4)

266.4 ; 2HA I 26S.S * 266.1 01/0

- . . _ Change

Friday Stocks Closing on

traded price day
Cities Sendee... 1.007.400 38 -ii;

Mesa Petroleum 835.600 im +

Sony B44400 1% -- 5-

Haliburtan 521.400 28t, - \

Texaco 476.400 23», - i*

Chang*

Stocks Closing on
traded pries day

Golf OH 467,100 32*» - h ■

«9 J20D 27», - \

IBM «OAOQ 601. —11*

Minnesota M-M 393.200 49V -1\

RCA 379,400. IS 1 * - *

WORLD

Capital IntL (7/1/78)

f M ) Saturday, Jans St Japan Dew 7,287.47, T5E 544.91 .

__ Besej values of all indrces are 100 except Austnriia AH Ordinary and Meat*— ■
500. NYSE All Common— 50: standard and Poors—' 10: and Toronto— 1 J)00: • Hie
Int named based on 1975, t Exdodmq bonds. *400 industries. 5400
industrials plus 4Q Utibbee, 40 ftlwnciah and 30 Tramrpaita. o dosed
u Uihvoj label. *

-18
+2 '

—15
-40
+ 36.

+26

— «

-20
+ 36 Varta
-16 Veto.
+40 Vsrali
Volks'

- Knanclal .Times : Tuesday June 8 1982

ni

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t 1 sw

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f ' *« Wn*

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vi ^^5

:!•■■ " ar:d CS^
(continued)

S3: J -
3?: .i

-i

”* -l
:J5

Tit -

iri :,-

!5S .;

-3

-,-:3 -a
:= -«

: *•-■»*
iS- ■

? Eat: .«

- ;■ -!

; • -r'j- f.. 4

Conpanies and Karkets

LONDON STOCK EXCHANGE

hopes bring near 10-point index turaround
index at all-time high and Gilts up again

-••■'•• Acconfit Healing Date*
r\ • ;_L • Option - 1 ■

"First Declare? Last Account

- JJealtngs tians DeaHngs Day ’
-Jane 7 June 17' Jane IS June 28

• Jane 21 - July -1- July 2 JuJyl2

-. July 5 July 15 July 16 July 26
-- *"N*w tbn» " dealing may take

from S TO two buglom/dey*
ocHtof. ;

•.Optimism. ~ about imminent
' tTJt . bank. lending rate cuts
‘ returned to dominate sentiment
‘ on London stock markets jester-
= dgy- hntJaUy. adverse factors, m-
-■ ckidiiig concern over tbe Israeli/
Lebanese- conflict, tbe Falklands,
-and a gtoomyOBI survey on UK
^ economic prospects, took a toil.
■■■This was .reflected in a price
: -markdown - as -equity ■- dealers,

•■ anticipating some nervous seU-

- Log, protected book positions:

In' the 1 event, sales ' proved to
be negligible and. values of lead-
ing sbares soon -' reverted to -
: Friday’s closing levels. Sub-
'SeqdenUyi the' authorities’ action
. In ' reducing -intervention rates
in UK ffljoney markets for tbe
r -second : . successive session
v touched, off -investment demand
for selected' leading shares:
t Stock, shortages became evident
. - and, with jobbers loathe to buck
: the trend , at the start of a new

- trading . Account,' rises in some

- leaders were swift and not
(warranted by actual trade.

* Utte market’s change of direc-
l *tlOn! wao illustrated by the FT
' industrial Ordinary share index.
'This ' measure was five points

- down - at 10 ' am, unctonged at
■ noOto. -and -finally 4£ up on the

day at 592.6, within five points
of its all-time record. - —

The announcement of yet an- .
other good UK trading surplus
underpinned the firmness is the
.late 1 business and the FT-
Actuaries three main, indices
attained bert-ever. peaks, the All- .
share . rising 0J> per cent to
339.26.

Interest rate speculation also
formed a buttress for Gilt-edged,
securities. Comment urging
caution on this front initially &- 1
duced loose selling and profit-
taking, causing losses ranging’
to i. These were gradually
regained and the currently un-
tapped longer end of the market
led the move higher to' register-
fresh gains, extending to \
among high-coupon stocks. In-
vestment confidence was ', bol-
stered 1 . too, by tbe March trade •
returns and thoughts that' this
week's short tap stock offering!
could attract sizeable applica-
tions- ' ■

*Ihe FT Government Securities '
index put on 0.24 for an U-day
advance of 2.37, or 34 per cent,
to -70.40 — its falsest since
March 20, 1981.

Royal Insurance up '

A firm Insurance sector was
featured by Royals, which
Jupmed 12 to 347p in response
to an investment recommends- -
tion. Hopes of a hid. from the
U.S. continued to inspire Minet
and the dose was 6 higher at a
19S2 peak of 202p.

Merchant hanks were inclined
harder in places. Comment ahead

3;-Jvi:V: f>p‘, > ! !

FINANCIAL TIMES STOCK INDICES

: Government Secs ...
Fixed Interest-..^-
-Industrial ‘OrcL-.-^-

Sold Mlnes^

-Ord. Dtv. Yield L.

Earnings, Yld.X(fuil)
P/E Ratio (not) n~~
Total bargain*

’ . Equity turnover Em.
Equity paig alns —

70.161 70.0a

70.52 70^6
687.8 6863
2223. 334.0
. 6J57 5.39

11.19 1133
10.86 10.82
17^)32 15,399
136J50 123.26
14^ 3p| 18 ^30

69.76, 69.74
' 30.00 70.06

580.1 687.3
220.0 .229.4
6^9 6.37

11A5 11J3
10.79 10.82
14,610 15,760
129^6 111.74
12, 305! 12 ,190

- ; 10 am 582.3. -31 am 5B4A Noon 537 A 1 pm 588.8

2 pm 390.0. ' 3 pm 590A -

Buis TOO Govt. Seca. 16/10/26. Fixed Int. 1828. Industrial Old.
1/7/35. Gold Minsa 12/9/58. SE Activity 1974. t Corrected.

. Latest Index 01-246 8026.

. *N1I-10.13. .

' HIGHS AND LOWS ' S.E. ACTIVITY

— —

! ^1983 -

SinoeCompllat’n

High Low .-

High

‘■ L«r ].

June- June

- -Govt'_Sees...l 7C

. :

Fixed InfcJ T-iLaa !

. j ■vsi

Hnd.Ofd — 69 V. 3

p^-

'Gold Mines. 302.0

-Dnilv
lilt Edged

187.4 40,18.

tsn/B) <sn/«> e^agj”--

.60j4 60,63 Bargains-.

. •8,11(47) pppB) Value - —

397.3 ' 49j4
(eQ.saiv - G 1 I £ -“ a .

liea.44n>-<W#4W» rgzgzi-,

. 669.9 I 43/6 fequftles . |

(ZSvfl/Sa) {ZE/IOpIV* Barge ln»~!

? I . ..wl Value I

860.11 249.1

of . - Thursday’s preliminary
figures helped Hill Samnel to
add 4 at 164p, while investment
buying lifted Haxnbros 7 to 135p.
The major clearing banks were
undecided. ’

Investment support was again
evident in the Brewery sector.
AlHed-Lyoas continued to make
progress, improving 2J more to
99 xd. Whitbread A edged up a
similar amount to 123p xd, while
Scottish and Newcastle dosed
3 firmer at 68p. Elsewhere, Dis-
- tillers found support and put on
3 to 184p. Reflecting Press men-
tion, HP Buimer advanced 14 to
.422p.

' Recently firm leading Build-
ings tiirned irregular. Blue
Circle softened 6 to 464p, hut
Tarmac firmed 4 afresh to 5S6p.
Elsewhere. Tilbury Group, met
renewed support and put on 5 to
a 1982 peak of 510p, while
Burnett and Hal la ms hi re gained
25 to 855p. William Leech, which
eanounced -poor interim results
recently, shed 3 to a year’s low
of 64p.

' The Chemical sector made a
firm showing. ICI, after opening
p shade tower at 326p, picked up
to dose 2 dearer on balance at
332p. Favourable Press comment
helped Flams, to rise 13 to 363p,
whNe Reutokfl put .on 5 to l7lp
following a broker’s visit to the
company. Coalite were actively
traded jm the wake of file recent
annual results and added 3 to
12 5p xd, while Laporte. respond-
ing to the chairman’s confident
statement at the annual meet-
ing; improved 2 to 149p. Plysu
gained 4 to 117p. but Leigh In-
terests shed that much, to 98p;
both companies have preliminary
results scheduled for Thursday.

GECand Plessey good

; After - Friday’s speculative^
spurt of 9 on reports' that British
Land has sold its 8 per cent stake
in the company at 140p per share
to a potential suitor. J. Hep-
worth. touched a 1982 peak of
119p, before ending a couple of
pence -up- at 116p. ESsawhere in
Stores, ' Harks and Spencer
firmed 3 to 169p and UDS
hardened a penny to 67p. N.
Brown. Investments: hardened
the turn to 123p following the
results and Greenfield- Leisure

gained 2 to $8p xd in response
to Press comment Down 18 last
week, Sonic- Sound fell 4 to 58p,
of ter 55p, on further nervous
offerings ahead of Thursday’s
interim figures.

The two major defence stocks,
GEC and Plessey,' began tbe
week well, the former adding 9
to a. 1982 peak of 954p and the
latter -dosing 10 higher at 45 5p.
BICC found support and rose
. 10 to 3€0p, while Ratal rallied
from an initially depressed level
of 420p to finish a net 2 harder
at 430p; the latter’s annual
results are due on June 22.
Thorn RMT traded nervously
around the 415p level before im-

- proving- late to finish a couple

- of pence - dearer on balance at
417p. Elsewhere, United Scien-
tific were notable for a Press-
inspired improvement of 15 at
400m. while Mnlxhead gained 6
to 152p on buying ahead of the
interim results scheduled for
next Tuesday and continuing
hopes of a bid from Tyco
Laboratories of the U.S. Mean-
while, Ferranti advanced 8. to
785p on continued talk of a bid
from Plessey. Cray Electronic
rose 5 to 72p and CASE, dealt
in . the Unlisted ' Securities
Market jumped 23 to 303p.

Revived demand in a limited
. market lifted Yarrow 20 to 365p.
Elsewhere in Engineering,
Peter Brotherhood contrasted
with a fall of 6 to lOOp on the
' annual, loss. Anderson Strath-
clyde, -a poor market recently
following referral of the bid for
the company from Charter Con-
solidated to tbe Monopolies Com-
mission, rallied 2 to 127p after
the preliminary figures. Buyers
showed interest in Francis Shaw,
3 dearer at 15p- Pegler Hatters-
ley edged up 2 further to 216p
awaiting tomorrow’s preliminary
' figures. Leading issues were in-
clined harder, with Hawker
noteworthy for a gain of 6 to
346p.

. Foods attracted a reasonable
two-way business. Tate and Lyle
slipped to a 1982 low of 176p
"before . closing unchanged at
178p, while British Sugar, after
opening 5 higher at 470p in the
wake of favourable Press com-
ment. reacted on the appearance
of sellers and closed a net 10
down at 455p. Rountree Mackin-

tosh met support and firmed 4
to 176p while Wiliam Low
gained 6 to 192p, the -latter on
Speculative interest
. Further support left Grand
Metropolitan 3 up at 228p with
the new nil-paid shares 6 to the
good at 56p premium.

Metal Box pleases -

Mela] Box highlighted mis'
ceilaneous industrials, rising
16 - to 166p in response to the
better-than-expected 38 per cent
rise in annual profits. Still re-
flecting the UB. • profit poten-
tial of its Zantac anti-ulcer drug,
Glaxo , - attracted ' . further good
investment support and closed 10
higher at a 1982 peak of ?17p.
Reed International, on the othev
hand, eased to 3l8p before dos-
ing a net 2 down at 322p on
disappointment with the annual
figures, while Reckitt and C o t man
lost 4 more to 296p with senti-
ment still unsettled by .the poor
half-yearly figures announced by
its Australian subsidiary.

Favourable week-end Press
comment prompted improvements
of 9 and 12 ' respectively in
Sidlaw, lSOp, . and Whatman
Reeve Angel, 305p. while Ylnten
firmed 6 to S02p on defence
spending hopes. Consultants put
on 9 to 177p and Eleco 5 to' 78p,
while Erskine House hardened 2
to 52p on hopes of a bid from
Solarosa SA. (Spain), which
owns a near-24 per- cent stake in
the company. Already, a doll
market on adverse comment, I CL
softened further to 56p following
tbe interim statement before
rallying to dose 3 down on the
day at 59p. Sketch! ey eased 2
liminary figures and Burco Dean
to 266p awaiting today's pre-
lost the turn to 28p ahead of
Friday’s half-year figures.

Travel issues turned duil fol-
lowing a report that Summer
holiday bookings were down by
5 per cent. Horizon Travel re-
acted to 200p before dosing a
net 7 down at 205p, while Saga
shed 8 to 144p and Zotasun 5 to
134p. Owners Abroad, down to
24}p initially, staged a partial
rally on the chairman’s cheerful
annual statement and closed 1£
cheaper on balance at 25p.
Elsewhere in the Leisure sector,
Pleasurama remained over-
shadowed by police raids on two
of the company’s casinos and
shed 10 to 240p.

Motor Components featured
Dunlop which, in a market short
of stock, gained 4 to 71p. Dis-
tributors were inclined easier.
Caffyns* preliminary results were
as expected and the price stayed
atllSp.

Demand in - front of today’s
prelim in ary results lifted Fleet
Street Letter 4 to a 1982 peak of
98p.

Properties took a distinct turn
for the better on revived interest
rate pptrmism. Land Securities
rising 5$ to 280p xd. . Slough
Estates were quoted at 99p ex
the scrip issue, up 2. Elsewhere,
Daejan met renewed support and
gained 5 to 161p. News of a
joint U.S. venture left Thames
Investment 2 cheaper at 104p,
but made no apparent impression
on Rush and Tompkins, un-
changed at 214p.

Reflecting the flare-up of ten-
sion in tbe Middle East, leading

Oil shares opened higher beTore
drifting back on lack of follow-
through support. ‘ British
Petroleum, up 8 at 324p, after
326p, held most of the initial
improvement, hot Shell ended
without alteration 422p, after

426 p.

Two contrasting features
emerged in Overseas Traders,
GUI and Dnffus falling 10 to 115p
after the rh airman 's bearish AGM
statement and Boosted .jumping
6 to 65p following revived bid
speculation.

Shippings were featured by a
rise of 17 to HSp xd in Hunting
.Gibson following Press mention;
tbe company announced yester-
day . that agreement 'had been 1
reached in principle for the sale
of its subsidiary, Westfield Ship-
ping, to James Fisher, unaltered
at 262p.

Occasional gains in the Textile I
sector included Shiloh Spinners, I
5 to the good at 20p on a revival .
of speculative demand.

Tobaccos made a bright show-
ing, with Rothmans outstanding
at 94p, up 5. on bid speculation.
Imps were relatively lively and
improved 1$ to 98p.

Golds move ahead

A bear squeeze, prompted by
the Israeli invasion of the
Lebanon, led to a 55.75 rise in
the bullion price to $324fi75 an
ounce and encouraged sizeable
gains in South African Go1d6.

Adding to the general firmness
of tbe market was another good
performance by the Financial
-Rand.

The sharemarket made' pro-
gress from tbe outset with per-
sistent buying from Johannesburg
being followed by Continental
interest

American selling later became
evident and dosing levels were a
fraction below the day’s high,
but the Gold Mines index rose 6
points to 228.

The mines, in the Gold Fields
group were particularly sought
ahead of the June dividends,
expected tomorrow. Blyvoor
rose 16 to 461p; the final divi-
dend was not known during
market hours.

Sooth African Financials were
marked . up in sympathy

The management changes and
£1.6m cash -injection- from
Burnett and Hallamshire helped
Ran d Lo ndon to put on 2 to 72p.

Activity in Traded Options im-
proved considerably and
contracts completed yesterday
rose to 2^80—1,934 calls and 346
. puts. Almost half of the business
was transacted in Imperial, in 1
which 1.171 -deals were done, 171
puts and L000 calls, 201 of the
latter In the August 70 series. 272 ,
in the August SO series and 249
in the August 100 series,

RISES AND RALLS
YESTERDAY

Rises Fails Sams
British Funds ... 65 — 2S

Corpns. Dam. ft

Foreign Bonds .19 1 8 49

Industrials 302 221 822

Rnxncial ft ' ' ”

, -Props. - 108 • 88 -315

RECENT ISSUES

EQUITIES

a ; »

issue i= 3 ;a = ® ; isaa

price

11 |llpi a ;Biih low[

jo I I

u fit? So -fi

!i*gl!i2S£3

HB50 F.P/23/6 378.
£90 lF.P.1 - llOl
16 jF.pJlB 4 1 32
1260 F.PJ 4)6 |430
{150 FJ».lae/5 158
Sa7ifiPjFJ>. 25/6 98

- I-! - 17

1250 F.P.114/3 1350
*105 F.P.! — 121
600 If.P.i - 670
77 |F.P. — 97

140 FJ>.t - 168
*4 F.P.: — 29

« F -P. ' — 90

268 kaaoc. Heat S«rvieeBia78
.92 !* Black (Michael) 20p] 99
19 I Cambrian ft Gen.7*p(. 30
293 *Gom. Microwave - 420

140 |*Draok Hidgs. ..158

84 Eleetro-Prot US60.60 84
10 ! &G roup inv Option--. 14
245 Ailo Technology. 247

110 &M1I6S 33 lOp 127

635 Oriflame SA {US5L5ft!635
88 jiJiRadio City *A' NV...: 94

160' Ruddle iG.) lOp 168

19 (Stewart Helm 21

6Q (Zambia Cops Cpr UK 60

jb9.0 8.1 4.614,1

+ 1 [u3fi I 8.4 4.3 13.7

si ifiiiii

1 2^ 2.1(27.4
—2 luai^o ajj i.o ii j

^i" iudT/J 4.i\ 2,4 tti
-5 bQBOc 2 2 4.4 10^
+ 1 b5.6 1^(8.511.0

+4 b3.S 2.61 2JB 1BA

FIXED INTEREST STOCKS

Issue I § a
price t o-o
£ Eos

4100 >£10
$99 J9S{£25 ‘
fllOO |F.P.

4NI R.P.
4100 F.p.
4100 'F.P.
1100 1 Nil

a\*-«

“ 1 High Low

$100 ‘F.P.
H07 F.P.
4100 &10'

11 I lQtglBournemouthWatarOS Bed. Prf.‘B7 B9 11
2 Sis I 8H2 Cred. Fonder de France MiS Lon.2B07 261 b
102 M 1011* East Anglia Water 9* Red. Prf. *987- 101l«
146 1£ 156 First Nat. 12*pc Conv. Uns. Ln. 1987.. 142
47 38 Grt. N'rth'n Inv. 4pq Net Cum. Prf. £lj 39

46 45 Do. 4.7pc Net Cum. Prf. £1 46

lpm i*pm Marlborough Props.mKCnv.Ln.^3-2002 1pm
11 11 Mid-Southern Wtr. BS Prof. 1987... -v- li :

lOOts 10OA. Nationwide Bdg. See. 143,% (26/4/SS1 100 >«
lOO 99^1 DO. 137 bS(23/6)S31| 9978!

100 >9 lOOls Do. 13£*<3)6(83>..|100ls:

|ll3ij 109*2 Queens Moat lOtf! Cnv.’89-91 KS ~ 111 «

I 11 lOiajWraxham Water 9g Red. Prf. B7-89...| 11 ,

“ RIGHTS” OFFERS

c£ i Latest

Issue P~ I Re nunc. 1982

price £■= I date i

P < S 1 9 B High ] Low

FJ».l27/4
FJ*.il3/6
F.PJ28/5
Nil I —
Nil —
F.P.ilOlS
F.P/90/5
F.P. 29.6
Nil —
Nil —
Nil -
F.P. 14/5
F.P. 24)3
F.P. 10/S
Nil • —

28/5 13*4

24)8 '190
. 9/7 179 !

— 66 pm,

— 412pm

81(5 . 6 1

18/6 610
18.6 580

— 2 *s pm

— 8pm

— 120pm

11/6 ,2B4
25/4 12*tj

10/6 162

— *spm

10 Ansbacher IH.) 5p.

180 |Bonk Leumi (UK) £1

158 earless Capei lOp.

44pm|Grand Met 50p ....

5pm 'Great Northern Tel (£10)..

5 |GrovebelU5p1

575 IHammerson Prop.

530 I Do. A

2*s pm Norsk Hydro (Kr. 100).

6pm i Press (Wm.1 lOp

eOpmjSaatchl A Saatohi lOp —

272 iStael Bros

lOiflisturla lOp.

246 (Vickers (£1K

*spm Young (H.1

11 +t •

185 — i i

175 -1, }

56pm +6
4i£pra —2

5 — ia J

610 -rG. . !
580 +G 1
2>?pm ..hi I
6pm— 2 • |

si m+ i . !

Ills

262 .-J.

lgpm ,

Rocundatlon data sstuslly test day for deallog free of stamp duty, b Rgund
based oa prospectus estimate, d Dividend rats paid or payable on part of
capital: cover based on dividend on fall cepltaL a Assumed dividend sad yMB:
t Indicated dividend: cover relates to pnwious dividend, P/E ratio based on latest
annuel earnings, u Forecast dividend: cover based on previous year's aeralngfc:
F Dividend and yield based on prospectus or other official estimates for 19B2.
Q Gross. T Figures assumed. A Figures or report awaited, t Cover allows for
conversion of shares not now ranking for dividend or ranking only lor restricted
dividends. 5 Piecing price, p Panes unless other w ise indicated. 1 1ssued by
tender. | Oflatad to holders at ordinary shares es a “rights.** “issued fay way ri
capitalisation. 55 Reintroduced. 71 Issued In connection with raotganlaatioa,
merger or take-over. || Introduction. Q Issued to former preference bolder*.
■ Allotment tatters (or fully-paid). • Provisional or pertly- paid eDotment letters;
* With warrants. ft Dealing* under special Rule. Unlisted Securities
Market, it London listing. 1 EBsctiv* faarae pries after scrip, t Fornwriy
deart hi under Rule 163(2) (a). & Issued tree as aa antitiement to onUnaiy

hotdars.

ACTIVE STOCKS

Above average aiA'vity was noted in the tallowing stocks yesterday.

Closing

Closing

, ■-

price

Day's

Price

Day’s-

Stock

pence

change

Stock

pgnee

changa

12Sxd

+ 3

1CL

- 3

348xd

+ 2

ici :...-

+ 2

Fisons ...;

363

+13

Low (Wm.)

192

+ 8’ :

Glaxo

717

+10

Metal Box

:+i6

Grand Metropolitan ..

2T8

+ 3

Minor

202

+ 6'

Hepworth (J.)

- 116

+ 2

Reed Intnl

' 222

- 2

FRIDAY’S ACTIVE STOCKS

Baaed on bargains recorded in S.E. Official List

Stack

Minet

Johnson Group

Fpdsy's
No. of closing
price price Day's
changes pence change

Friday's
No. of cloning
price price Day’s I
changes pence - change

Plantations .....

2

S

13

Courtalds

17

S6

Mines'

69

23

. 77

Reckitt ft Col

17

'300

Others

3T

74

45

Low (Wm.) ...

15

188

—

—

— .

RTZ

15

418

rotate

620‘

443

1.404

Hepworth (J.)

14

114

.+ 6

Beecham 1

13

250

+ 1-

Glaxo

13

707

+11 '

—

LASMO

13

327

- 3-

—

Anderan Strath

12

125

- 1

-IB
- 2

ICL

Saatch: &

12

62

— 1-

—

Saaichi New

12

90pm

— 5-’

'+ 9

BAT Inds

11

453

+ S

s- 1* * r

I "

I

e- B*

V'* -

SSi&

* . f* 1

yrif* *■

f ' S-J ^

”, *i '*•?

.«• • a-.’. ■■

-e ,r':f .•

FT-ACTUARIES SHARE INDICES

:Ttae MBac are Ibe joint compflaflon irf tte Ftanrial Tnes, ike iBdftate of Actarics

Md tte FaaOs of AcMes

EQUITY QROUFS
& SUBJECTIONS

Moo Jose 7 1982 2 * K S S ' 35 •

4 . 3 2 1 .

;. * 9UDWMIVIW a &» BL

- ' Earafcgs Db. PIE

PW_, {. mkhOmms Show ODrter of tar fV»x YWd% YteM% Ratio Wet Mac Met Mac Mac

J °lr ;«*» ,<?£, w»

CAPITAL CUMMC207) -

BuBt>ratote«Ms<a)

CwdracttaftOxetiwfiao <2tt— _

^BactricabCm ■ »■-

Eri g b weriao CmMWg QM

lle rNn i rn l Eraheenep TO —

Mebds and Metal Formi»uai>

lUMffCB Lv -

Other tadtstriMMatertataOS)

COHSWMEKBAOOPCaOU.

D p e rrenandPbtater5<22?..

FoodManufactwtng(2Z) —

Food Retaritag (J4) —

HHritii and Household Products (8) _
Leisure C23> — i :

NrmMUlBm

Ra c ka igtogand Paper O/D

Stares (453 —

TedHesCa)

Tobaccos 0) U —

Other Consumer 05) —

ones GROUPS C77) —

C H ad M ig M.

Office B»draK5tt{« —

S«pp*BgaodT»aKporta3) —

0teO3) ^

soosHWcwrffv -

FWAMCIAIjCWUPQP)

Bauks(6)_^— - ■■■ —

DteaxC Houses (9)

Insurance (Life)

he— ace mrawM —

' banoraenkersO) —

Mefifo alBa flfa Q2t—

Property (49)^

Other financi al 05) -—

lnimmfintTriiflsOlD-— -

Wh t n B nianrr (4) » ■■■>■ — — 1

fttiggjjU s ffl ' —
ALLSHMEIMEXPBB^

W3Ab 1 7qjrl

30M* J0425
MM7, VOX
M8J3 3tt55
VUa 33L61

3854*1 38632
;2fiUS 2H31
1 mb7 4aw

flXB) : INTOESr

!£&

Mon Wk
June, dne
7 %

Jl 5jrai-
2 535JM

; 4 trredera

5 A» Stock

W 4

Jm Mv

HStt -
mat t»
mn os

22059 f-'.'.
U4£7 020

K.97 029.

6482 MO

1 ^

iadM 2 Ura»
3

4 Ifeta

:*m l*—

S3 7 Mgh
t u 8 CcqxD
2 9

. 10 tBBfcen

' S* UiOtbefi

** g - ;

-321 14] Prefaw

AVERAflEGRBSS
REB6RVTI0N YIELDS

5 jws.
15 jeaa.
25 yeas.
5 je«.
35 ran.
25JWB-
5 was.

. .

Mon '

Ffl

- Jtae

Juae

7 :

4

Htt

3LS7.

12M

1247

um

T2SL

33W

2342.

■BbH

2348

2285

32.42

2X47

2348

-2X65

T2X-

2228

1220

Htt

3451

1*50

HB

3441 -

252 :

NEW HIGHS AND
LOWS FOR 1982

The following Quotations In the Share
lirformetjon Service yestvrtfay attained new
Mgta end Lows tor 1982.

NEW HIGHS (123)

* BRITISH FUNDS 1381

INT. BK. ft 0*SEAS GOVT. STLG- KS. OJ
CORPORATION LOANS <S)

LOANS (11
BEERS (7J
BUILDINGS fB)

CHEMICALS (2) '

DRAPERY ft STORES (SI

ELECTRICALS (121 ' j

ENGINEERING (J)

FOODS £51
HOTELS (11
INDUSTRIALS CTO
INSURANCE (Z1
MOTORS ri>

NEWSPAPERS (21
' PttOPEtlTY <1) ,

SHIPPING (21 I

TEXTILES 13)

TRUSTS no
OIL ft GAS 12) . ..

NEW LOWS (57)’

AMERICANS (8)

Bethlehem Steel Mfrs. Hnxrver

Chate Manhattan Snerrv Coin,

Tolajt-e-Palmorive • U.S. Steal
GATX Zanita Com.

CANADIANS IS)

Can. Imp. Bank RJo Alodra '

Hudson's Bav Trana. Can. pipe

Inca * •

BANKS n>

Deutsche Bank W«Hf Fargo

Manxon Finance

BUILDINGS (2) .

GIosspp leech CWmj

STORES <1» •

Soalc Spend

' ELECTRICALS (S)

Mitel Corp. Wigwr <jh j

Thom EMI 7oe Cn».

'. ENGINEERING (21 .

Brothe rh ood (Pj TecatemR

FOODS (1)

Tale ft Lvlp

HOTELS (11
Rowton Hotels -

INDUSTRIALS CM)

Blttam U.) . Krletww (A.)

Burro Depn Lesney Predicts

Balgctv Manch Stib Canal

Easelte ■ . Pres* (Wm.)

Gartons ' Rowan ft Boden

Howard Tenene . •

NEWSPAPERS Cl) -
Gordon ft Gotch

- -PAPERED-

Smith (David)

PROPERTY (S)

Autmark Int. Skmah Ertt IOpc

Clark, Nickofli Cojit. •

Thames Inv. ft Secs. Do. Spcccm. '91-94
Trust Secs. De w. -r.*

TEXTILES O) '

Carrington Vfrella •

TRUSTS (2t

M. & G. Group ' Mato Fund
OIL ft GAS (31

’ Brunswick Oil Sceptre Res.

CalHm (K.) Pet.

OVERSEAS. TRADERS Cl)

Gill * Duthis ■

RUBBERS <1J

Malay Plantations • ■

MINES (4)

North Broken Hill - . Aver Hlcam. .

Vufcjn Min. Gaevor

trnuriphf HT-* — ■ a l wwn:ciirn»»n^ 'iln

.J^SrafS^SSS^na3i^^ Craw swei, iradisv pnra^iv postal

OPTIONS

Tirst < Last Last For
Deal- Deal- Declare- Settle-
ings ings tion ment
May 24 June II Sept 2 Sept 13
June 14 June 25 Sept 16 Sept 27
Jane 28 Jnly 9. Sept 30 Oct lit
For rate indications see end of
, Share Inform a tion Sendee
Money was given, for the call
of Scottish and Newcastle, J.
Hepworth, - Hothmans, Eagle
Star, UDS, Waddington, Backer
and Dobson^ Flexello Castings,
Imps, BatSr- 1CL, Metal Box;
Bonstead and Town and - City.

I No puts, were reported, , but
j double options were arranged in
Resold and Coortanlds.

WORLD VALUE OF THE POUND

Ttw table below gives the Mutt
available rata of exchange for the
pound against various currencies on
June 7 1982. In some cases rates era
nominal. Market rates are the average

of buying and selling rates except Abbreviations; (A) approximate rata, commercial rata; (ch) convertible rata:

where they are shown to b» otherwise, no direct quotation, available; (F) free (fn) financial rates (exC) exchange

fn some cases market rates have been rata; (P) based on U.S. dollar, parities certificate rata; (nc) noncommercial

calculated front those of foreign and going sterl'mg/doHar rates; fT) rata; .(nom) nominal; (o) official rata;

currencies to which they are tied. tourist rate: (Ban) basic rata; (bg) (ag) sailing rata.

calculated front those of foreign and going steriing/doHar rates; (T)
currencies to which thoy are tied. tourist rate: (Ban) basic rate: (bg)

buymg rata; (Bk) bankers' rates; (cm)

PLACE AND LOCAL UNIT

VALUE OF
£ STERLING

Afghanistan Afghani — —

■Albania Lek

Algeria' — Diner

inrfnm JFraneh Frano

Andorra — -1 Spanish Peseta

Angola Kwanza

Antigua (3> E. Carl bbaan t -

Argentina.. Ar. Peso
Australia (V) Australian 9

Austria. — Schilling

Azores — Portugese Escudo

Bahamas Ba- Dollar

Bahrain Dinar

Balearic fries.. spa. Peseta

Bangladesh Take

Barbados Barbados 8 •

Belgium B. Franc

Belize B 8

Benin C.FJL Frano

Bermuda.-,.... Bda8

Bhutan Indian Rupee

Bolivia Bolivian Peso -

Botswana-.. Pula

Brazil - Cruzeiro It

Brit Virgin irielf.- U& S

Brunei^.. Brunei V

Bulgaria Lev

Burma Kyat

Burundi Burundi Frano

Camero'nRepuUloC.FJL. Frano

Canada — Canadian!

Canary Manda Sp*ntah Peseta

Cape Verde Irie^.. Cepe V. Escudo
Cayman Wands Cay. Is. 9
Cent. Afr. Republic C.FJL Frano

Chad^.I— C.FJL Franc

Chile C. Peso

China Renminbi Yuan

CclomMA..^ a Peso

Comoro telandsu... C.FJLFrano '
Congo (Brazanrillft) a C.FJV, Frano
Costa Rica — Colon

Cuba Cuban Peso .

Cyprus — Cyprus £

CzBchestevBlrta.».„ Koruna . .

Danmark Danish Krone

Djibouti— .^4. Pr.

Dominica E. Caribbean 9 .

Dominican Repub, Dominican (Peio)

Ecuador Sucre

Egypt Egyptian 9 -

Equatorial Guinea Ekueie
Ethtopja.>...^.„ Ethiopian Birr

Falkland Islands.^.
Faroe Klands-._i_

F1J l lslnds__

Finland .....

France —

FrenehCTyln AfV.

French Guiana

French Paclfifrte.;.

Gabon —

Gambia

Germany (East) M
Germ any (West)....

Ghana —

Gibraltar

Greece.. .. —

Falkland b£‘
Danish Krone
FU 13
Markka
French Franc
C.FJL Frano
Local Frano
OF J». Frano
C.FJL-Prane
Dalesa
Ostmarfc
Dautsch Mark
Cedi

Gibraltar * .
Drachma.-- -

PLACE AND LOCAL UNIT

99.00
•10.13
B. 1265
11.1076
290.66

((CM) 60.7096
ICT) 62.691
4*4

86,620 (5)

. 1.7130
30.076
13CL25 .

' 1.7920
0.673
190.65
• 38.25

5.5840

W B0.78
88^5
3.5840
• 555^75
1.7920
16.72

((cm) 78.85_ .
l(FKA) 179 JO
1.8670
. 298.14
1.7920
3.7B50
. 1 .6362

11.65
163.695
, ■ *555,575

.. 2.2465
196.66
97^0
1.4933 ••
655^75
555.375
- (61069.78
3.2630
(F) 112.76
• 655^75

555.375
((0135J4
1(F) 71.68 '
1.4820
0327

f (o ora) 10J0.
i n/e 18.99
^mis^B
' 14.525
310 (eg)
4.84. . .
1,7920

1(0) 59,31
1(F) 78,72 ■

• (U) 148. •
381.2 !

(P). 3,6700 |

• LO

14.525 '

- 1.8476
8.2285
' 11.1D76
555^75 .
11A075

195(48)

-555.578 ' •

4 JO

4^7

4^7

4.94

1J) ’

. . US. 862 5

Greenland

Granada ..........

Quada loupe

Guam

Guatemala

Guinea Republic...

Guinea Bissau

Guyana

. Danish Kroner
.. E. Caribbean 6
. Local Frano
UA. 8
. Quetzal
. Syll •

. Peso

.. Guyanese S

Haiti— - Gourd

Honduras Repub... Lempira
Hong Kong H.K. 8

Hungary. ... Forint -

leeland

India

Indonesia

Iran

Iraq-

Irish Republic.

Israel -

Italy-

Ivory Coast

Jamaica

Japan

Jordan —

Kampuchea —

Kenya ....

Kiribati

Korea (Nth)

Korea (Sth)

Kuwait

Laos

Lebanon,.

Lesotho-

Liberia

Libya.

Liechtenstein-.™..
Luxembourg

Macao :

Madeira

Malagasy Republic
Malawi -....I....:.,-.

Malaysia

Maldiva Islahds ._
Mall Republic-..^.

Mate —

Martinique

Mauritania — -

Mauritius —

Mexico

Miquelon

Monaco—-..,. —

Mongolia...-

Montserrat..—

Morocco. — ...

Mozambique

Nauru — Australian Dollar

Nepal — Nepalese Rupee

Netherlands Guilder

NetherlandAntllles Antillian Guilder

New Zealand: — MZ Dollar

Nicaragua Cordoba

Niger Republic. — . C.FJL Frano

Nigeria-... Naira '

Norway — Norway Krone

OmanSul'ateof— .-Riel Omani

Pakistan* — Pakistan Rupee

Panama. — Balboa .

Paptia N.Gulnea -.. Kina.

Paraguay - Guarani

. f. Krona
. ind. Rupee
; Rupiah
.Rial

. Iraq Dinar
. Irish £

. Shekel
. Lira

. C.FJL Frano

. Jamaica Dollar
. Yen

. Jordan Dinar
; Riel

. Kenya Shilling
. Australian 3 _ _
.Won
.Won

. Kuwait Dinar

New Kip
. Lebanese £

. Loti

, Uberlan S
. Libyan Dinar
. Swiss Franc
. Lux Franc

; Pataca

,'Portug'se Escudo
: MG Franc

KWacha
Ringgit
. Rufiyaa
, Mall Frano ■

. Maltese £

Local Franc
. Ouguiya
. M. Rupee
. Mexican Paso
C.FJL Franc
French Franc
Tugrik

E. Caribbean 9 ,

Dirham'

Meticci I

VALUE OF
£ STERLING

14.525
4.84
11.1075
1.7920
1.7820
39.55
TP-50. ..
53640

8.96

3.59

10.4265

62.0920tJ

19.13 _ Y
16.72
X, 171. 10
14b.75{sg)
0.5291 ’
1.23375
40.20
2,36015 .
665.375

PLACE AND LOCAL UNIT

VALUE OF -
£ STERLING

Peru Sol exelAll. 148,06

Philippines. — -Philippine Peso,... 14.70.

Pitcairn Islands -. ^e^Zealanda 2 .s¥b0

Poland Zloty { {rJiiaHs 85

Portugal Portugese Escudo 130.23

Puerto Rico U.S. 8 1.7920

Qatar — Qatar Ryal \ 6.90

Reunion lie de la...Franch Franc I 11.1075

Romania..- Leu {(SS/lli? :

Rwanda -.Rwanda Franc I 170.41

Unici 19.47
170.41

2.150.4
18.975

— 1.7130. ..
'1.73(D)

- 1,320/14 -
0.5146

17.92
8.9465
1^5339
1.7920 -

0.5305 .

3.64
B0.75

10.75 .

130^6 .

■ 610.925

1.04

’ 4.1490 .- .

13.53
-1,110:78
0.725 ■

- 11.1075 —

91.80
19.1750
84.95-
559.376
11,1075. .

(6)5.^401) !

. 4,84

10.33(sg)

53.80

1.7130 .

• 23.60
4.735
3.2076 .
2.3530
17.893 ■ '
063375
L2D0947 teg)

. 10^25

f 0618 *■

' 20 50
1.7920 *
1.2975.

[ffiats .

St. Christopher „.E. Caribbean 9

St. Helena. St. Helena £

S. Lucia E. Caribbean 0

St. Pierre Local Franc

St. Vincent -.—'....E, Car. bbaan 0

Salvador El Colon

Samoa American ..U.S. 0

San Marino -.Italian Lira

Sac Tome & Prin...Dobra
Saudi. Arabia.. ...... Ryal

Senegal C.F.A. Frano

Seychelles. S. Rupee

Sierra Leone Leone

Singapore —:.j Singapore S

Solomon Islands ...Solomon Is. S
Somali Republic ...Somali Shilling (1)
Somali Republic — Somali Shilling (2)

South Africa Rand

South West African

Territories _;s. A. Rand

Spain Peseta

Spanish ports in
North Africa Peseta

Sri Lanka — .S. u Rupee

Sudan Republic ....Sudan £ (u)

Surinam „s. Guilder

Swaziland ...... Ulangenl

Sweden S. Krona

Switzerland -...Swiss Franc

8yria. Syria £

Taiwan-... .New Talwan 8

Tanzania .Tan. Shilling

Thailand _.Baht

Togo Republic C.F.A., Franc

Tonga Islands Ha'anga

Trinidad .Trinidad & Tob. 9

Tunisia ,L .Tunisian Dinar

Turkey...-. -Turkish Ura

Turks a Caicos u.s. 5

Tuvalu.,,.- -.Australian 9

Uganda —Uganda Shilling

Onrtetf States-.. „u.S. Dollar

Uruguay Uruguay Peso

(M. Arab EmiraiesU.A.E. Dirham

U&S.R. ..-....'Rouble

Upper Vote..-. C.FJL Franc

4.84
. 1JO
4.84 -

11.1075
4.84
■4.47
1.7920
2.360.6
72.90
6.1380
656.375 •
11.44 (Bg)
2.1828
3.7860
1.6445
(AUl^B

22.33

1,95323

1.95525

190.65

190.65
36.75
1.6128
3^078 ..
1.95325
10^9
3,64

(M10.0

68.10

1B.45

40.85

555J75 _

1.7135

4.3010 .

0.9S6(sg)

273.65
. 1.7920

1.7130

155.0
1.7920
f(om)S3.02
)(fn 132.00
8.6735 -

lfiB63 '
595.376

Vanuatu Dollar '

-Vatican — —..Italian Ura

Venezuela :Bo/lvart

.Vietnam J3dng

Virgin island U.S, U^. Dollar
Western Samoa ...Samoan Tala -

Yemen (Nth) -.RyaT

Yemen (Sth) - S. Yemen Dinar

.Yugoslavia ,.;.New Y-DInar

Zaire Republic -.....-.Zaire -

Zambia .....Kwacha.

Zimbabwe.—— .^Zimbabwe S

no jo

1,7130

2,360,5

7.68

((0)5.9020

um^B(n)

1.7920

I 2.10

(AJ0.81S0
] 82.4340

I 10.157933
1.639B

1.3340

•That pert of the French community in Airies formerly French. W*st Africa or French Equatorial Africa, t Rupaec par pound. 4'Genaral rales 1 of oil and Iran
exports 76.25. Rota « the transfer market (contrallsd). it Now one officiei rate. (U) Unified rate: Applicable on all transactions except countries having a
bilataral agreement with Egypt and who ere hoc members of IMF. (Q) Baud on gross rates against Russian ’rouble, . (1)- Parallel exchange rate tor eesenfW
imports. (2J Exports, non-essential imparts end transfer. (3) Now one rate. (4) Essential good V •

$ and £ firm

THE POUND SPOT AND FORWARD

The dollar improved in cur-
rency markets yesterday despite
intervention by various European
central banks. The firmer trend
was based on a recent escalation
zn Middle East fighting and a rise
in Euro-dollar rates.

Sterling was generally firmer
despite an easier trend in
domestic rates. There was little
reaction to the latest trade
figures which showed a continued
surplus.

The French franc improved
within the European Monetary
Svstem and was placed above the
Irish punt. The D-mark was
easier but was still the strongest
currency.

DOLLAR — Trade weighted
index 1154) against 115.2 on
Friday and 10545 six months ago.
Three-month Treasury bills 12! 16
per cent (MS per cent six months
ago). Annual Inflation 64! per
cent (64) per cent previous
month) — The dollar rose to
DM 2.3820 against the D-mark
from DM 2.3560. It was also
firmer against the Swiss franc at
SwFr 2.0300 up from SwFr 2.0225
and this was its highest closing
level since last September. In
yen terms the dollar improved to
Y245.75 from Y243.75.

STERLING — Trade weighted
index 90.9. unchanged from
noon and down from 91.0 at the
opening but np from Friday’s
dosing figure of 90.6 (914) six
months ago). Tlrree-month
interbank 12* per cent (1415 per
cent six months ago). Annual
inflation 9.4 per cent (10.4 per
cent previous month)— Sterling
opened at SL7S70-1.78S0 against
the dollar and traded wftfhin a
very g arrow range of SI. 7870-
1.7930 before closing at $1.7915-
1.7929. a fall of 40 points.
Against the D-mark it rose fo
DM 4.27 from DM 442350 and
SWFr 3.64 from SwFr 3.6350. It
was also firmer against the
French franc at FFr 11.1075
from FFr 11.0450.

D-MARK —-KMS member
'(strongest). Trade weighted
Index 124-2 against 124.7 on
Friday and 1225 six months ago.
Three-month Interbank 9.125 per
cent (10.55 per cent six months
ago). Annual influrtim gjj per
cent '(5.0 per cent previous
month) — The dollar was gener-
ally weaker at yesterday’s fixing
in Frankfurt. Recent pressure
on the French and Belgian franc
subsided a little, possibly after
official intervention by various
central banks. The French franc
rose to DM 38.40 per FFr . 100
from DM 38.26 and the Belgian
franc was higher at DM 5.293
from DM 5.29 per BFr 100. The
dollar rose to DM 2.3850 from
PM 241565 and the Bundesbank
did not intervene in support of
the D-mark although support
outside the fixing was probable.
.The D-mark suffered from a rise
in Euro-dollar rates and recent
losses by the Government in
local elections In Hamburg:
Elsewhere the Swiss franc rose
to DM 1.1684 from DM L1665.
while sterling was higher at
DM 4.2640 from DM 4.2320.

FRENCH FRANC— EMS mem-
ber (central position). Trade
weighted index 79.3 against 79.5
on Friday and 81.3 six months
ago. Three-month Interbank
16 r* per cent (IS-flT per cent six
months ago). Annual Inflation
13-9 per cent (14.1 per cent
previous month) — The . French
franc recovered in trading
yesterday and was mostly higher
against major currencies at
yesterday’s fixing in Paris. The
D-mark fell to FFr 2.6046 from
FFr 2.6150 and the Belgian franc
was lower at FFr 13.789 per
BFr 100 from FFr 13.8190.
Outside the EMS the dollar rose
tn FFr 6.2135 from FFr 6.1460
and sterling was higher 'at
FFr 11.11)80 compared with
FFr 11.0580 on Friday. However
the Swiss franc slipped to
FFr 3.0418 from FFr 3.0440.

Day** ■

June 7 s pread • Ctoae • - One month

U.S. 1 . 7 X 70 - 1.7930 1 . 7915 - 1 .7925 O^fMUOcdla
Canada 1 2 JUOO- 224 SO 2 JM«WJW 30 04045 . 90 c dte
Noth kid. 4 . 71 * 2 - 4 . 741 * 4 . 73 - 4.74

Belgium 80 * 040-85 40 . 7040.80 TB-ZSe dir .

Danmark M- 49 V 1444 ** 1442 - 144 *

Ireland 1270-17380 1 . 2330 - 1.2346 0 , 83 - 0 . 75 p die
W. Gor. 4 J£*t- 4 JB 4 1 %-ftpf pm

vv. uer. <1 m j ■» ■ » i i ■*.* ■ * •§#■ !»■■■

Portunol 13940 - 1*040 1 * 040-13040 W- 350 e dta — . wmiw -cu.ee

Spain 19020-19040 19085 - 18076 . SS- 75 c dta -4 49 235-275 df» -5J35

Italy ' 2J357-2J384 2389 W 9 R 3 * 20 - 231 Ira dla —1093 G 3 V 47 Sdls - 11.10

Noway - 1090-1044 109 Z- 10 SJ TWinm ifte - 2 J 0 BV 7 dla —296

France H. 0 M 1 . 1 Z TT. 1 «f- 1 in>. TSMS^a die -2840 4347 dm —1021

Ui 10 . 56 - 10.91 104 SV 10 -S 9 h V 1 *sora dis -086 1 - 1 * dia 042

438-443 440-441 232 - 2 . 12 ? ptrt 8.06 6 . 18-549 pm 543

■ 2947 - 30-12 3046-3010 13 - 9 gru pm 449 33-26 pm 342

3,634167 343 ^- 3 . 64 * ZVZ*opn» 844 7 * 4 * pm 7.89

Belgian rata la for convertible francs. Financial franc 88 . 2048 . 30 .
Six-month forward dollar 1 . 92 - 2 . 02 c dia. 12 -month 3 . 304 . 40 c dla.

the: dollar spot and forward

Day's " 5 Thraa . ■

r . spread CloSa One month • P 4 . month* p.a.

1 . 7270 - 1 -7980 1 . 7916 - 1.7925 O 2 D 440 cdfo - 1.67 040 - 1 . 00 dis - 2.12

It 14475-14830 1 . 4490 - 1452 D 046045 c pm 447 140 - 1.70 pm 437

a 1 . 2520 - 1-2570 14520-1 JBffi 033 - 036 e die --330 O. 80 - 045 dis - 2.63

d. 2 . 6355 - 2.0440 2 . 83 S 5 - 2938 S 1 36 -T 4 S 0 pm 5 BO 440340 pm 548

m 4445 - 45.06 454045.07 4 - 7 e dla - 1.46 1943 dls -148

Notway - 1090-1044
Franca n . 07 - 11.12
Swadsrt 1056-1041
Japan 439-443
Aimtria 2947 - 30.12
Swftz. 3.633167

. . Three %

p.a. months pj.

- 1.67 090-1 .OOd Is - 2,12
—494 248-2484 is - 4.68
4-44 4*r4^pm 391

-342 72-82 die -341
“593 17 * 3-19 dts . — 5.03
“ 6.71 2 . 11 - 293 d is - 79 Q
4-22 4 VT. pm 396
-2294 330 - 1 Q 1 Gdi* - 30.35
-449 235-275 dta -595
-1093 63 V« 7 *jdl* - 11.10
-290 5 V 7 dl* -298
-2390 43-47 dia —1691

-085 1 - 1 * dia 092

6.05 6 . 18-549 pm 593

499 33-26 pm 34 S

024 7\-€\ pm 7,89

UKt 1 . 7870 - 1 .7980 1 . 7915 - 1.7925 09 D- 030 cdfe

I ref an dt 1 . 4475 - 1.4830 1 . 4490-1 4520 0964195 c pm
Canada 1 . 2520-19570 19520 - 1 JW 5 093 -O 36 c dta

Canada 1 . 2520 - 1 9370
Nethlnd. 2 . 6355 ^ 2.6440
Belgium 44 . 9 5 4 5.08

Danmark 840704.1360 8 . 0970 - 8.1020 2 . 46 - 2 . 70 ore dis -391 5 . 60 - 6 . TOdta -298

W. Gar. 29780-29900 2981599825 1 . 17 - 1 . 12 pf pm 5.77 399-393 pm 547

Portugal 7240-7340 7290 - 7296 . 60 - 200 c dla -2092 150 - 525 dis - 18.56

Spain 10690-10696 10640 - 105.50 2095 a dis -294 85-05 As -399

1916 V 1921 19164 - 1917*2 TOVlIVlirn die - 9.78 29 V 31 »* dfs - 9.18

64960 - 6.1070 8 . 0960 - 6.1010 & 10 - 090 ora dis -099 09 B 0 . 60 dis -096

6 . 1660 - 6.2150 6 , 1975-64025 10 V- 11 \C dts — 21.78 Z 1 - 22 ** dis — 14.04

Swsdert' 54080-69230 54080 - 5.9130 0 .BQ-Q 40 MS pm

Japan

Auatrld 16 . 75-1692 1 R. 77 V 16 . 78 3 * SVBgro pm 6.17 27-24 pm .648

Switt. 24225-24475 24295 - 2.0005 1 . 70 - 1 92 c (Hit 991 490492 pm 998

- t UK and Ireland am quoted In U.S. currency- Forward premiums and
discounts amply to the U.S. dollar and not to the individual currency.

currency Movements currency rates

ttanir r* Bank Special (European

June 7 .. tSjtaS G IE2SJ Juno 7 °SSE» r X y

index. Changed % ragtn * | Unlt *

„ h Starling - 0.624771 1 0.561447

Sterling...: ,? 2 'f TS , UAS., 12 1.11784 140387

245 . 10-24890 245 . 70-24690 1 - 59 - 1 .51 y pm

- 21.78 2192 ** dis - 14.04
. 1.01 230 - 2.10 ptn 199

797 4 . 74 - 4.64 pm 7.63
6.17 27-24 pm 648
991 490-492 pur 998

June 7

Bank of
England
Index .

Morgan

Guaranty

Changes^

909

— 38.5

u.s. dollar

1154

-+67

Canadian dollar-~

86.4

-194

Austrian scJlIIIIng—

317 . 8 .

+254

Belgian franc

.954

.- 1.7

83.7

— 13.4

Deutsche mark»_

124.2

+ 47.4

Swiss franc- — .

■ 1469

+ 94.7

Guilder-

114.9

+214

French franc.—.

794

-149

Lfl-a.

Yen

54.1

134.7

- 48,8
+ 28.3

Starling.™— —

U 4 . S.„ 12

Canadian 6 .. 15 . S'
Austria Sob. 85

Bre ad on trad* wa lghtad obangaa from
WaaMnoton a gre e ma n t Di e mlm 1971 .
Bank of England Index (bass svaraga
1975 - 100 ).

OTHER CURRENCIES

Belgian F.^-. 14 00.3978 46.22*2

Danish Kf-*_ 11 1 9.07295 1 8.14633

Pmaik. 7ial 2.66605 1 2.39342

Guilder. S n/a 2.65071

French Fr^_ 918 647040 6.25100

Ora. 19 1474.43 1323.60

Yen 51* nla . 246.750

Norwgn. Kr. 9 692385 6.12861

Spanish H s. 8 118443 106982

Swedish KM 10 691314 643787

Swiss Ff...-.„ 61*, 297028 294608

Greek D rich.* 901*' rut. 65.1545

0 CS/SOR rats for June At 140258.

EMS EUROPEAN CURRENCY UNIT RATES

Belgian Franc ...
Danish Krona ...
German D-Mark
French Fninc ...
Dutch Guilder ...

Irish Punt

Italian lira

% change
from
central
rate

Currency % change

ECU amounts from X chengs
central against ECU central adjusted for

rates June 7 rate divergence

inc ... 44.8963 459242 + 1.18 +149

ne ... 8.18382 8.14638 -Oj46 -095

-Mark 241815 293342 -142 - 1.01

ic ... 6.19564 693100 + 0.57 + 0.58

ler ... 2.67296 2.65071 - 0.83 . -092

0.686799 0.633038 +041 +092

1305.13 1323.80 +192 +142

Changes are lor ECU. therefore positive change denotes a
weak currency. Adjustment calculated by Financial Times*
For Starting/ ECU rate sea currency retea table.

EXCHANGE CROSS RATES

X change
adjusted for
divergence

+ 1.19

-095

- 1.01

+ 0.58

-092

+092

+142

Divergence
limit %
±19440
±19428
± 1.1097
±19743
±19069
±14689
± 4.1242

Argentlno Poao„
AuatraliaDollar...
Brazil Cruzeiro*.
Finland Markka*

Greek Drachma—

Hong Kong Dollar

Iran <al

KuwattDinardCD)
Luxembourg FrJ
Malaysia Dollar.]
NawZealandOIrJ
Saudi Arab. Rlyalj
Singapore Dollar)
sth Jtmoan Rand]
UA.E. Dlrhanu-I!

26 . 60026 , 640 t
1 . 7 120 - 1.7 140
29794 - 208.64
89219936
110 . 91 6 - 117.107
10 . 42 - 10.433
146 . 75 *
0 . 5141 - 0.5151
80.709090
4 . 1 + 4.15
- 29560-24600
6 . 1636 - 8.1425
3 . 78 - 5.79
1 . 9626-19540
6 . 56809.5790

14 . 850-149001
0 . 9560 -04665
16691-16744
4 - 5925 - 4.5945
64 . 50 - 64.70
5 . 8170 -B 9200
8145 *

0987449876
4845 - 45.07 I
2410094120 ,
14150-141651
34280 JI. 42 S 5
XJ 490 - 2 .il 10
14895 . 14905 .
39715 - 3.6735 i

Austria^.

Belgium

Denmark....^,

France

Germany-

Italy

Japan —

Netherlands ._

Norway.

Portugal

Spain

Sweden

Switzerland-..,
United States...
Yugoslavia

f Now Ml

laDoflarJBalgian Franc

Dutoh Guilder
Italian Lira 1,000

Canadian Dollar
Belgian Franc 100

FT LONDON INTERBANK FIXING {1 1.00 a.m. JUNE 7)

3 months U4. dollars

6 months U9. dollars

bid 14 a/4 Offer 14 7/6 ( bW 14 7 iB offer 15

Tha fixing rats* are the arithmetical ma ns , rounded to the nearest one-sixteenth,
of the bM and offered nrtsa for SHkn quoted by the market to five reference banks
at T1 am .each working day. The banks are National Wa s t aJuat sc Bank. Bank of
Tokyo. Deutsche Bwk. Baum National* de Paris and Morgan Guaranty Trust.

EURO-CURRENCY INTEREST RATES (Market closing Rates)

U9. Canadian Dutch
Starling Dollar Dollar Guilder

13U-139B
13 U 133 a
13 - 131 r
12HI-13t«
12 !*- 1 B 7 b
12 f*- 13 re

French

Kalian

Franc

Ura

ll-ll

8*1-878

41*46*

8S*-87 B

4Jb-4*b

8S»-87b

44^5*

86.879

63*-57g

85,437b

66*-57s

86,47b

13 lB-15 1434-15 lg

14-lSls 14V15

15*4-17

18U.1714

16-17

147s.l5 Ig
1470-1518
145*- 14 7a

15 Ig. 18 Is |-14ig-143«

- ,n ^ daposiis: one month 14*u-14n» per cent: three months 13«n-14*j» per cant; six months 13V13>« per cant: ona year 13*u-l3 7 * per cant
ECU linked deposits; one-month 15**»-18“ifc par cant; three months 14 VIA 1 * par cant: Mr months 14V-14S* par cent ona year ISV-iyv par cant.

Aston » (closing rates in Singapore): one month 14V-14* 1 !* per cent: three months 14V147 ( per cent: six months l4**i»-14**» per cant; one year 14 n i£-l4 ,s u per
c ®" t Eurodollar two «eara 1 4%- 15 per cent; three years 14Vl5*i par cent; four years 16-15*. par cane five years 154-15*. per cant; nominal closing

rates. Short-term rates are coll for U.S. dollars. Canadian dollars and Japanese yen: others two days' notice.

« 8 foJ, °l” n fl '■to* 1 i l ;' , ' 8d ,or London dollar certificates of deposit: on a- month 14,05.14.15 par cant: three months 14.20-1497 par cent: atx months 14.3&,

14.45 per cent: one year 14.30-14.40 par cent

MONEY MARKETS

Bank cuts dealing rates

UK clearing bank base lending
rate 13 per cent (since
March 12)

Interest rates continued to fall
In the London money market
yesterday, following the redac-
tion in' Bank of England money
market dealing rates. With funds
in short supply the authorities
intervened before lunch to buy
bank bills at reduced rates
wfitbSn. bands 2, 3 and 4. This
led to speculation of an
imminent cut in clearing bank
base rates by * per cent,
although the mood of optimism
was somewhat tempered by the
failure to cut the buying rate
for band 1 bills.

A shortage of around £30Dm
was forecast by the authorities
in the morning, but this was
revised to £350m in the after-
noon. The major factors were:
bills maturing in official hands,
and a net market take-up of
Treasury bills —£413m, plus
run-down bank balances — £130m.
These were partly offset by
Exchequer transactions +£50m,
and a fail in the note circula-
tion +£220m_

Iii the' morning the Bank of
England bought flSlm bank
bills, made up of £3m in band 1

MOREY RATES

NEW YORK

Prime rata 16-16*:

Fad funds (lunch-tuna) I3*i-13 r »

Treasury bills ( 13 -waafc) 12.16

.Treasury bills ( 26 -wesk) 12.24

(up to 14 days) at 13& per cent;
£127m in band 2 (15-33 days) at
122-13 per cent; £41m in band 3
(34-63 days) at 12J-13I per cent;
and £10m in band 4 (68-84 days)
at 12H2g per cent

A further £70m bank bills were
purchased in the afternoon,
through £3m in band 1 at 132
per cent; £29m in band 2 at 12|
per cent; and £38m in band 3 at
1 per cent

The total help of £25 lm was
about £100m less than the fore-
cast shortage, and overnight
interbank money remained tight
tbroughont, finishing around 18
per cent

In New York the Federal
Reserve Bank intervened twice
to add funds to the banking
system. When Federal funds
were trading at 13 j per cent the
central bank added Slbn by way
of a repurchase agreement for a
customer account, and later
bought $300m of bills, with funds
still at 13i per cent

Call money remained around 9
per cent in the Frankfurt money
market yesterday in fairly tight
conditions. The DM 6.1bn added
to the market by way of a
securities repurchase agreement,
did not balance the withdraw! of

LONDON MONEY RATES

DM 8.3bn as -a similar 28-day
repurchase agreement came to an
end. Another agreement runs
out nest Monday, and unless the
liquidity is replaced by the
German authorities, conditions
are expected to deteriorate as
large corporate tax payments fall
due. There should be some extra
margin for borrowing under the .
Lombard facility however, with
Lombard debt falling to DM 400m
last Friday from DM 900m bn
Thursday.

mmm

flfiurc .1

-T rad e H M^te dlgdix

EUROCURRENCIES

$ rates firm

The dollar was mixed %
forward foreign exchange
trading as Eurodollar interest
rates firmed following the in-
crease. in last week's U.S. money
supply figures. Eurosterling rates
eased, after an initial firmness,
widening the dollar's forward
discount against the pound. Euro
Swiss franc rates were firmer,
narrowing the Swiss currency's
forward premium against the
dollar, while Euro D-mark rates
were steady after an early rise.
The German unit's forward
premium against the U.S.
currency widened as a reflection
of the firmer trend in Euro-
dollar rates, and the firmer trend
of the dollar m spot trading.

Forward trading by the weaker
members of the European
Monetary System, also tended to
reflect the upward trend in Euro-
dollar rates, leading to a small
redaction in discounts.

This was the case with the
Italian lira and the Belgian
franc, but was also the same for
the French franc, despite a rise
in Eurofranc interest ratec« 3yeek
money closed at 40 per cept, and
very short French rates were
around 300 per cent at one
time.

1 Sterling
.Certificate
r of deposit

Interbank

1 Local fLocaiAuttvj
! Authority j negotiable)
deposits bonds

GERMANY

lombard - .t,— - 9.00

Overnight rate .. — 9J0

One month 9.075

Three months - - _ L ___ 9.125

£lx month* - 9.00

FRANCE

Interv e nti on no , , 164

Overnight rats 1845

One mooch 169126

Three months 16912

Bht months 154625

JAPAN

Discount rate ■ — ■- ■■ -j BJt

Call fun condition cl) ; 7.15825

Bill (kacount ,<th tea-month) .« 7 41 875

Overnight

2 days notice...

7 days or

7 days notice...
One month......

Two months...,
Three months.

Six month*

Nina months—

One year

Two years...

3-133* j 3314-131, 1 _

- I 13.151s • -

Finance. (Discount!

House Company Market Treasury
Deposits Deposits : Deposi ts ; Bills *

13 Ss ^4 1 125*- 15 | .

lSIs-lBiS

13-1273

lSS*-lBSfl

sts*

12f*-l 2*

: 13**18
13*8-13 is
•13-15U
18 ts-131*
325*-13
12V13
125*.13 ,

13 -lSts
13*a .

13Sg-13fe

13W-13

151S-13

32Ifl-Z11fc

13-12fi«

1278-12*0

I3S» | 13 - - —

13*8 .1121,-13 { 12*8 127 a 131 B

16*4-1318 1238-1268 13* 12, i 13*4

13*8-^13 fe; 12 1 b- 12 6s- 134-12 *4 12 U- 13* 12*8

■- - \ 1178-12* 12*8

ratoa^ortSI^ "«*“* ath “™ »®«m **y*.*» d . Long-totm focal suthoiny mortgage

™ 1^1 p *£, “T 11 - four roc* 13*1, per conn five years 13% per cent ® Bank bill rates In tobte

are ^buying rates Joe prime paper. Buying rates (or tournnonUt bank Wilt 12* PV cent; four months trade bills 12 7 i per

12% orm Traasury bflfo 12% p*r cant; two months T2 f 5* per cent three months

Kf ‘“n* t hilto 1M, per caret: two months IZV per cam add three

Fb^n2 r I^L^ n^ ; o^i ? 0, S! W* w months ^3 P** cent: three months 12 % per cent.

^ ^«^ H riwL, 8 ^.u R ^^L (P . uN * h ^ by -i h * R««nce Hotrees Asandstion) 14 par cant from June 1 1382. London
c J?? r| na Ban k Rst aa l«dmg 13 p#r can*. London during Bank Deposit Rates for sums at ssvan days'
J ^ n 1n fS B }L Average tender retire of discount 12.6675 per cant.

CaftincBtas of Tax Roposlt (Series B) l3Ps par cent from May 14, Deposits whh drawn tor e«ah 11 per cant.

Yen

Danish

Krone

6s*41b

67a-7

- 7 7l «
7rir-7A
7 tV- 7-A
7ni-7|%

1 -

19-201?
186,201*
195fl 21U
1B5 b-2D1 b

Eligible 1 Fine
Bank , Trade
Bills e 1 Bills ♦

Ca»r. Sefcag Halt fori BauawW
57/h^ PrawsssSL, Ntoxtsstar 061-2365665

tM

Charities OfficW hnasL Ftosttf

77 Lons*, aM, EC2N 106. 034881815

l £2Zi®&=d m 2*

CtaltMa T-Iit Mmiiuh

11. wwu, EC2MSTP

Anenc^i uj PS.Q

Auwj3*Ua 17.7

Ft, Eaacrn T sLbL. 36.0

SadcRessacreTM.. Sb

Smdtor on Trett _ OM
rhiwdrefoii Fond Mroagerg gl
g T^PnacresS*, tod gw. OO&bSteS

riaih ihiallrw Fends Hgt Ltd, (a)
5qarewyUnaW«AlHE. 052420822
Binwniraal, tCi-9 864 LM
CntgnMHfUMtTU.il
Baodentasy, LredonECSNS

s's's 1

TMff ante H anfetb to neqr-taipaqr duR in an Stock
Exdmtga Unug&wt tte Voted K*edm hr a fa* «f £600
per van far each lecmity

£>»U£i a

s

gnfeah j

Tuesday June 8 1982

ICL makes £13.5m pre-tax first-half loss

BY GUY ©E JONQUIERES

BRITAIN’S leading com-
puter company, yesterday
reported a sharply reduced loss
tw tbe six months to March 31.
. T « e «w»pany said it expected to
return to profit for the year as
a whole on die strength of a
further recovery in the second
half.

Tile pre-tax loss in the first
half was £l3.5m, down from
£33.Sm for the corresponding
period a year before, on turn-
over crfr £335. lm (£318.4m). The
bulk of the loss, £12^m, was due
to interest charges, and the trad-
ing loss narrowed to £600.000
(£19.1m).

ICL also announced plans to
acquire for £2. 8m Computer
Leasings (CLL), an affiliate
which finances the hire of ICL
computers. The decision reflec-
ted the company’s concern that
a continued deceleration in the

leasing business could expose it
to increased liability for
deferred taxes.

Mr Christoph or Laidlaw,
chairman, said ICL was on
course to meet all its main
targets though much bad still
to be done to ensure a sustained
recovery."

He would not give a precise
profits forecast beyond saying
the expected profit in the
second half of this year would
outweigh the first-half loss.

The expected Improvement
was due largely to rationalisa-
tion measures in the past 18
months. These included plant
closures, shedding about 10.000
staff and an overhaul of ICL's
product strategy based on
collaborative agreements with
international partners.

Economic conditions had not
strengthened as quickly as ICL

ICL

PRE-TAX
PROFITS -
/ LOSS

40 -V-

■ 1977/1

-79fe0 ■ 'SVZ

had hoped, particularly Abroad,
and the company was operating
at a loss in several overseas
markets. It was resuming
recruitment of university

gradwtes. however, and
planned to hire about 800 this

summer.

ICL’s borrowings on March 31
stood at £132m. below the level
at which it required coverage
bv the £200m loan guarantee
issued by the Government- last
year. A seasonal rise, however,
was expected in ndd-summer.

Mr Laidlaw .indicated that
ICL expected to ‘seek additional
equity financing this year. That
would complete the capital re-
structuring begun last Decem-
ber when the company raised
£32 .2m through a rights issue.

ICL holds a nominal stake of
5 per cent in CLL. It has
agreed to repay also, in the
next 18 months, £42 m of cash
advances to CLL from its other
shareholders, which are leasing
companies.

ICL said the repayments
would be financed by revenues'
from leasing customers and
that the writing-down of the
book-value of the leased equip:
ment would be covered by the
release to its reserves of CLL’s
deferred tax liability.

CLL would also release to
ICL its leasing repurchase pro-
vision, worth £2 6m. The
arrangements would result in a
£2Sm credit to ICL group re-
serves this year and would con-
tribute £2m to profits in the
current year.

ICL said deferred tax liabili-
ties could be avoided only if
CLL’s leasing business con-
tinued to grow. Its customers,
however, increasingly were
choosing to buy their machines
outright instead of leasing
them.

BSC may
close main
site as
orders fall

Continued from Page 1

Mozart

that the effect In this case
may be slightly bizarre.

The Porta Sound MP-1 Is
the third generation of a
family of electronic key-
boards which Yamaha intro-
duced in 19S0 and which
seem to be sweeping the
Japanese home market be-
sides doing formidably well
overseas. The original PC-1
model, costing a modest
Y3G.OOO (£82) and selling at
the rate of 60,000 units a
month, looks like a miniature
piano keyboard bat can pro-
duce melodies in eight
different voiees (such as
violin, clarinet, guitar, tram-
net or vibraphone).

Its successor, the PC-100,
boasts the same sound
capabilities but can be played
by the simple process of
passing a card with a mag-
netic strip pasted on it
through a slot in the machine.
The cards cost Ylj200 for a
get of six pieces and Yamaha
expects to have about 200
titles available by the end of
July-

Once the PC-100 has
learned a piece of music from
a card it can either play back
both the melody and the
accompaniment together or
the accompaniment only at
whatever speed the per-
former chooses to play the
melody with bis own fingers.

Since the announcement
of the PC-1Q0 in April
Yamaha has taken a mere two
months to come up with the
mu sic- writing MP-L which
will retail at Y98,000 when it
comes on to the market in
July.

The company apparently .
has more tricks up its sleeve.
A fourth generation Posher
Sotuid, equipped with capabi-
lities that are at present a
closely guarded secret, will
reach the Japanese domestic
market In the autumn and
may start to be sold overseas
a few months later.

NUR willing to end unity on pay

BY PHILIP BASSETT, LABOUR CORRESPONDENT

By Izn Rodger

British Steel Corporation is
considering closing one of Its
five main production sites
because of weak markets and
a sharp fall in orders.

A derision is expected
within two months. If a site
Is dosed, it would mark the
failure of the- “slimline”
corporate plan undertaken
after Sir Ian MaeGregor
be came ehmrman two years
ago.

Under the plan, manpower
was cut substantially but the
five hulk steelmaking sites at
Port Taibot and Llanwern in
Wales, Scunthorpe and Tees-
side in England and Ravens-
craig in Scotland were kept
miming in the hope that
demand would improve

There was a surge of orders
then In advance of price
increases, but since March
the corporation’s orders have
fallen by about a third.

Even before the drop in
orders, the five works were
running more than a quarter
below capacity.

BSC officials are unsure
why demand has fallen so
much but they say other
major European producers
are experiencing a similar
downturn.

A sharp Increase in UK
imports early this year
indicates that some countries
outside the EEC are taking
advantage of EEC price
increases to sell into the com-
munity. BSC Is hoping the
European Commission will
tighten up its voluntary
restraint agreements with
them.

EEC Industry Ministers
meet today in Luxembourg to
consider the renewal of sup-
port measures for the steel
industry.

Next week, the Government
is expected to publish BSCs
financial plan for the current
year.

THE FRAGILE unity between
British Rail’s two manual
unions was strained further yes-
terday when Mr Sid Weighell,
general secretary of the
National Union of Railwaymen,
said he would make a pay deal
with BR separate from the Asso-
ciated Society of Locomotive
Engineers and Firemen, the
train- drivers' union.

BR has moved to isolate
drivers by suspending the
closure of threatened railway
workshops — reprieving 6,000
jots, mainly belonging to NUR
members — and by offering the
NUR a special 50p a shift pay-
ment for agreeing to the
crucial productivity issue of
more flexible work rostering.

The re-emergence of the tra-
ditional divisions between the
NUR and Aslef has taken con-
crete form in the abandonment
of proposals for a meeting
between all three rail unions
which was provisionally set for
tomorrow. This had been called

to draw up a reply to the BR
board’s pay offer of 5 per cent
from September.

However, BR has now agreed
to a further round of negoti-
ations with the unions next
Wednesday. The unions will
press both for an increase in
the offer and for the lifting of
the strict productivity condi-
tions BR has attached to it

BR has told the unions that
if it has not secured agreement
from them by July 30 on six
outstanding productivity initi-
atives — including both flexible
rostering and the manning of
trains without guards — the
offer will be withdrawn.

Aslef is resolute in its oppo-
sition to flexible rostering. The
NUR’s opposition to the
removal of train guards has
halted the introduction of new
trains on the recently electri-
fied Bedford-St Pancras line,
but Mr Weighell insisted that
the NUR bad put before BR
concrete proposals on how
angle manning without guards

could be implemented.

Mr Weighell said that if BR
made a satisfactory offer on pay,
hours and holidays to his mem-
bers, he would settle separately
from Aslef.

Speaking as he arrived for a
meeting between BR and the
unions convened by Mr Albert
Booth, Labour’s transport
spokesman, Mr Weighell said:
“ I will make a settlement any
day individually. If BR made
a suitable offer to me -then I
would settle tomorrow.”

After the meeting there
were few hopes that the inter-
vention of Mr Booth had done
anything to improve relations
either between BR and its
unions or between the unions
themselves. Mr Weighell in
particular left the meeting in
an angry mood, and others who
attended doubted the value of
the exercise.

Hazel Duffy, Transport Corres-
pondent writes: An alternative
policy to the closures of rail-
way workshops put forward by

British Rail Engineering Ltd is
expected to be discussed today
at a meeting between • the
unions concerned and senior BR
management

Hopes that BREL would win
a part at least of a large
Nigerian order for rail wagons,'
which would have provided
work for the works at Shitdon,
County Durham, that had been
due to dose under the original
proposal, appear to have been
dashed following the formal
opening of the initial tenders
in Nigeria at the weekend.

The BREL tender price of
£36m was the third highest of
12. The lowest was a Spanish
company with a bid of only
£19. 9m.

BREL emphasised yesterday,'
however, that the Nigerian auth-
orities were not committed to
the lowest tender. BREL has
told the Nigerians it could
reduce its tender by £&m if the
package was to Include wagons
exported in kit form for final
assembly in Nigeria.

BR presses case for private sector funds

BY JOHN ELLIOTT, INDUSTRIAL EDITOR

BRITISH RAIL expects to hear Telecom bond of up to £l50m.
within the next couple of However, this is now being held
months whether the Treasury up while the Government
will allow it to raise private examines plans for wider
sector finance to help fund a privatisation of BT.
new railway service between
Victoria Station and Gatwick
Airport

Construction work has
already started at Victoria on
a £30m project to separate the
service from other railway
routes, but BR will have prob-
lems persuading the Treasury
that private sector finance
should be used.

Other schemes include a
bond of £50m to £100m which
the British Airports Authority
hopes will be approved later
this year. The authority is
also developing plans for
expanding private sector joint
ventures on hotels and cargo
facilities.

The electricity industry is
studying possible private sector
funding for combined heat and
power schemes and the Ministry
of Transport is interested in
its potential for road schemes.

These developments were
reported yesterday to a meeting
of the National Economic
Development Council at which
the Treasury stressed the major
problems involved.

private sector at higher rates of
interest than would he available
from the Government's own
funds.

This is one of several
schemes that hare emerged in
the past few months for giving
nationalised industries access
to private finance. The only one
to be given provisional Treasury
approval so far is a British

BR is preparing plans for
using private sector capital on
a general electrification project,
and the Past Office is consider-
ing whether such finance could
help it fund the peak of its
capital expenditure on automa-
tion, in two or three years’
time.

The Treasury has blocked
most such proposals in the past
year or so. Industries have not
been able to produce plans
which separate the schemes
from the rest of their busi-
nesses. Nor have their schemes
shown sufficient commercial
potential to make it worth
attracting finance from the

Some of the heat has gone
out of the debate because many
of. the industries are not now
as short of investment funds as
they were a year or two ago. •

BR, however, is particularly
short of investment capitaL It
is trying to . persuade the-
Treasury that the new facilities
it. is developing at Victoria, plus
new rolling stock which it could
purchase with 'private finance,
would produce a " dedicated,"
profitable service separate from
the rest of its operations.

Funding pitfalls. Page 10

Quarterly trade surplus down

BY MAX WILKINSON

BRITAIN’S current account sur-
plus on the balance of trade fell
to £553m in the first quarter of
this year from £1.36bn in the
last three months of 198L

According to official figures
out yesterday, tins development
reflected partly a fall in the
surplus on visible trade from
£4S2m to £22 4m bewteen tile
two quarters.

The deficit on non-oil trade
rose by over £2 00m to £423m
between the two quarters.

The figures are. however, sub-
ject to numerous uncertainties,
because- of changes in the way
statistics are collected, different
methods of applying corrections
to them, and because the pattern
of exports appears to have been
fluctuating sharply.

In the past three months of
last year, the figures suggest
there was a substantial gzwth
in exports with an increase in
volume of 8 per cent compared
with the performance at the
start of 1981 and a 5 per cent
improvement on the average
volume of exports in 1979.

However, in the first three
months of this year, exports

BALANCE OF PAYMENTS
Current account
£m- seasonally adjusted

1981 1st qt r.

Visible trade
+1.676

Invisibles*

+ 894

Current

•balance

+2^70

2nd

na.

-r 1,065

na.

3rd

tia.

1- 637

ruu

4th

+ 482

-r 875

+1,357

1982 1st

+ 224

4- 329

+ 553

jan.

- 152

4- no*

— 42

Feb.

+ 154

4- no*

+ 264

Mar.

4- 222

-r 107*

+ 331

UK TODAY

DRY with sunny periods after
some fog patches.

E n gla n d, Wales and •m ys t of
Scotland

Dry with sunny periods but
some fog patches. Max 23G
(73FJ.

NW Scotland and N Ireland
Cloudy, sunny intervals,
occasional showers. Mae- 19 c
(66F).

Outlook: Dry, sunny intervals,
some showers in the west

• Invisibles are projections subject to revision.

WORLDWIDE

appear to have dropped back to
about the same level (by
volume) as in 1979.

There have also been
puzzling variations in the pat-
tern of exports so far this year.
The volume of exports is shown
to have fallen sharply in Janu-
ary, perhaps as a result of the
exceptionally severe weather,
but to have recovered since
then to almost a record level
in March,

The pattern of imports

appears less puzzling, with a
surge in the autumn associated
with a period in which the run-
down of stocks was decelerating.
If oil is excluded, the level of
imports has remained high,
about 6 per cent more in March
than the average volume for
1979, but still a little below the
peak of last autumn.

In spite of these uncertainties,
the continuing balance of
payments surplus was welcomed
yesterday by Lord Cockfieid, the
Trade Secretary,

Continued from Page 1

Interest rates

rates were ik of a point firmer
at I4 t£ per cent supporting an
already - strong dollar which
benefited from nervousness in
the foreign exchange markets
over the Lebanon cr isis ,

In London the dollar was
sharply up against all the major
continental currencies, and its
Bank of England trade-weighted
average against a basket of cur-
rencies improved from 115.2 on
Friday to 115.9.

The dollar gained 40 points
against the pound from Friday’s
London dose to $1.7920, but the
pound remained relatively firm
against other currencies and ifs
Bank of England trade-weighted

index moved up from 90.6 on
Friday to 90.9.

Terry Dodsworth In Paris adds:
A quieter day for the French
franc on the Paris foreign
exchange market yesterday
failed to dampen recent specu-
lation about a forthcoming
devaluation of ; the _ currency
within the European Monetary
System.

President Mitterrand's decis-
ion to give a Pres c onfer ence
on economic issues tomorrow
has also led to wide^iread
reports that he may ba Toady
to tighten up on ■ France s
economic management in prep-
aration for ' a currency
readjustment.

Continued from Page 1

Reagan

between Mrs Thatcher and
President Reagan will be
lii rated during the visit How-
ever, Mr Francis Pym. the
Foreign Secretary, will have a
long discussion today with Mr
Haig.

Mrs Thatcher is due to pre-
sent a major statement to the
Commons this afternoon when
it returns from the Whitsun
recess. Her report will focus on
the outcome of the Versailles
summit covering world
economic issues, the FalkXands
crisis and the Middle East con-
flirt.

Ajaccio S
Algiers S
Amsdm. C
Athens S
Bahrain 5
Barcfna. S
Beirut S
Belfast F
Beigrti. s
Berlin F
Bfarntz C
Bmghm. F
Blacks!. S
Bordx. F
Bou)>jn. S
Bristol S
Brussels S
Budpst R
Cairo s
Cardiff S
Caa'h’t* F
Caoe T. S
Cfcicg t
Cologne T
Corn go, F
Corfu S

Denvert

OuMin F
Pbivnk. S
Edfibgh. F
Faro S

Florence F
Frankft. C
Funchal C
Geneva F
G-brllr. S
Gl'sg’w F
G'rnsay C
Helsinki F
H. Kong g

Istanbul S
Jersey g
Jo'burg S
L. Pfms. S
Lisbon S
Locarno S
London g

r«fay

midday
•C *F -

24 75 L-Ang.t
Z7 81 Luxmbg. T

25 77 Luxor

25 77 Madrcd S
35 95 Majorca S
24 75 Malaga S

24 73 Malta C

19 68 M'chstr. S

28 62 Malbne. F

20 68 Mx. g.t
19 S6 Mlainrt

21 70 Mrtan S

17 63 Montri.f

23 73 Moscow H

19 68 Munich T
21 70 Nairobi

25 77 Naples F

24 75 Nassau

29 84 Nwcotl. S

20 68 NYorkt

21 70 Nice S

18 64 Nicosia S
— • — Oporto S

20 79 Oslo ’ S
18 61 Paris F
27 81 Parth F.
— — Prague F-.
18 W Ryfcivk. ' F

25 77 Rhodes S

21 70 i Rio J’ot
25 77 Rome S

27 B1 Salzbrg. ft

22 ri S'ciscof
IB 65 S. Mritr. ;
35 77 Sregapr. C

24 75 S'fiagot

IB 66 Stckftn. F
IB 69 Strutja. F
12 64 Sydney S’-

25 79 Tengltr S.-

Tel Aviv S‘
Tenerife S
Tokyo C '
22 72 TV Mot
W 61 Tim fa F
T2 54. Valencia F
24 75 Venice F .
22 72 Vienna S -

28 79 Warsaw F
24 78 Zurich P J

THE LEX COLUMN

The Bank of once

again let its dealing rates in
the money market edge down
yesterday, but its decision to
hold the sensitive Band 1 rate
unchanged ; suggests cautions
rather than enthusiastic accept-,
ance of a lower interest rate
structure.

Index rose 4.8 to 592.6

The new management is
demonstrating clear evidence of
its ability. to turn ICL round,
but it is getting no help, from
improved demand. The pretax
loss has been reduced from
£33 .9m to £13.5m as the effects
of the extensive rationalisation
begin to show through. In the
IS months to March the number
of employees has been cut by
10.000, implying costs savings
approaching £100m. The impact
will be stronger still in the
current half, which is why the
company is confident of at least
break-even fhis year. .

Meanwhile the new manage-
ment is taking, the opportunity
to clean up some of its more
questionable financial inherit-
ance— in the shape of the main
leasing affiliate CT-T..,- This off-
balance sheet financing has long
been regarded with suspicion
in the City but the decision to
re-absorb CLL back into ICL
has been taken for more pres-
sing reasons. CLL has become
increasingly uncompetitive in
leasing terms and therefore
volume ofg business has been
falling and — that ultimate
horror for all leasing Com-
panies — deferred lax has been
starting to crystallise. By buy-
ing CLL in^ ICL can use its
painfully acquired tax losses as
shelter for the liability.

In the short term the deal will
increase debt by £47.m, while
the company still has to spend
about £20m on rationalisation in
the current half. So while
trading cash flow continues to
improve, net debt is beading up ;
again. With the April deadline
for redeeming £50m of perfer-
ence shares looming, the pre-
liminary figures are likely to be

accompanied by a further call
for substantial capital.- The
shares, down 3p yesterday at-
59p, have • more than doubled
from their low point, but are
unlikely to prove exciting till
tiie refinancing is out of the
way, '

maintained final dbMjgJ
suggests that the market is look

KffSrther ahead-**

tural problems in the UF can

industry — and draw Irttte r

fiden.ee from Metal Box s recent
performance. Net debt has teen
held to about 50 per cent of
shareholders funds by a
property revaluation but a cash
SS looks inevitable at some |
point.

Metal Box-

Reed International

After a succession of embar-
rassing false dawns, Metal Box
at last looks poised for a
genuine recovery In earnings.
The company . was obviously
taking no chances- when, four
days before its year end, it fore-
cast that profits for the two half
years would be broadly similar.
In the event, the second six
months was considerably better
and the riiares rose 16p to 166p
yesterday bn pre-tax profits for
the year to March of £40.2m, a
rise of 3S p.er cent .

But the revenue statement
shows all too dearly the cost of
cutting back operations in the
UK, as well as Metal Box’s
dependence on overseas profits.
Trading profits, are halved by
the interest bill, unrelieved ACT
helps to produce a 45 per cent
tax charge and the • South
African minority absorbs almost
half of - the residue. All
reorganisation costs have again
been bundled below -the line,
leaving . Metal - Box with . a.
retained loss of £2 6.7m.

Only in central heating has
the company detected an im-
provement in underlying UK
demand, ‘ but the current
weather must be doing wonders
for beer can production while
a change in the pricing policy
of Coca Cola lias pushed up
capacity use <m the beverage
can linen Taken together with
the effects of* major, if belated
surgery. Metal Box should regis-
ter a marked recovery in UK
earring -this year. Growth over-
seas will, probably continue at
a lower rate. .

The 10 per cent yield on a

The last quarter of *««*}
International’s year to March
Vine a nasty habit of throwing
up large exceptional charges
this time there is
relating largely to Odhams and
fixture rationalisation in wall-
coverings, compared wni
£ 12.5m in the fourth quarter
of last year. This holds back
the full year-pretax profits to
£71.Sm on the historic cost con-
vention compared with £50. 4m.
OveralL 1981-82 has carried
some £3m less than 1980-81
above the line, as well as bene-
fiting from the previ ous ye ar's
cutbacks and the absence of
£12m of Strike costs. The lower
pound has. boosted overseas
Ao.r mn gs on translation by some
dm .

Still, Reed seems to be
making good underlying pro-
gress with its problem busi-
nesses. with considerable loss
eliminati on in UK paper and
decorative products. The. pic-
ture is somewhat spoilt by a
£19m drop in the newspapers’
trading {unfits — the result of
higher newsprint costs, pressure
on the cover price, and bingo
prize money — but the core
publishing business is perform-
ing- strongly.

On a current cost basos the
dividend is still only half
covered after exceptional Items,
but Reed has increased ft by -Ip
tol4p net, which in'^gross terms
takes ft. just bade to 1 the level
At 322p, down 2p
yesterday, the yield is 6.4 per
cent and the prospective p/e on
a hill tax charge roughly eight
.times.

POWER

FOR

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Tel: 01-486 7288. Telex: 888103. . . ■ • - - ,

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